Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Assalam-o-Alaikum

I have opened Islamic (Shria) account for 2 million in a bank. I have invested one million from that account in stock exchange through the same bank and bank will share whatever profit it gets from this inventment after 1 8 months. The ratio of profit is not fixed. I`ve two questions:

(1) According to Islam, is this investment Halal or Haram?
(2) Do I have to pay Zakat on one million that have been invested in stock market and is not with me now, till completion of 1 8 months period?

May Allah Ta`ala give you reward for answering this question.

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Answer:

Zakah calculations

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Question-(1): According to Islam, is this investment Halal or Haram?

Because the bank you have kept your funds in is Islamic or Shariah-compliant, it would be absolutely safe to assume that they would invest your (and their) funds in Shariah-compliant businesses….thus the investment and the returns it makes would be considered ‘halaal’ and lawful.

Question-(2): Do I have to pay Zakat on one million that have been invested in stock market and is not with me now, till completion of 1 8 months period?

Respected brother, even though you might have mandated the bank to invest your 1-million in the stock market, you still remain the inherent and legal owner of that asset; thus you will be liable to pay ‘zakah’ for 2-million….the 1-million cash deposit and also for the 1-million owned by you which you have mandated the bank to invest.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan