I am aware that Riba (usury) and investing in specific markets (Alcohol, Porn, etc.) is haram. However I was wondering if investing in index-linked certificates are deemed to be halal..?

These certificates follow the country's CPI (consumer price index) and are usually for a fixed period of time such as 3 years or 5 years. This link: http://darulfiqh.com/indexation-inflation-and-investing-in-nsi-index-linked-certificates/ seems to explain they are not Shariah compliant therefore haram however I'm not too sure if this is infact correct as these certificates are simply tied to the country's inflation with little interest added on top which one can dispose of and thus no money is being made on existing money. It is just a means to maintain current monetary value within the time period agreed (inflation).

Further information about these certificates can be found here: https://www.nsandi.com/system/files/asset/pdf/index-linked-savings-certificates-key-features.pdf


-----> I can understand this question might be a little confusing so I've modified it slightly. Is it permitted to invest in products that are halal in the way they work however they pay some interest as part of the income they generate for the investor. Could one just dispose of the interest and make use of the halal investment itself?

For example, investing in a new company startup which commits no haram business itself but provides a little interest on the money lent to it. Could one just dispose of interest and maintain he's investment in this new company startup?


1 Answer 1


After extensive research I have come to the conclusion that despite the potential halal investment there is still interest (Riba) involved. Therefore going into an investment with the intention of disposing interest is similar to repenting before sinning which of course puts you into a sinful state: https://islamqa.info/en/answers/165010/sinning-intentionally-and-intending-to-repent. I hope this helps others.

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