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25 votes
4 answers
108k views

How do Islamic banks make money if interest is prohibited?

I know that Islamic Banking involves the prohibition of interest based loans. But how do Islamic Banks make profit if they charge no interest?
Abbas Gadhia's user avatar
  • 1,301
12 votes
1 answer
5k views

Can a Muslim borrow money from his own 401(k) plan, with interest?

I understand from this, and other related questions, that Muslims are not permitted to charge interest on loans. This brings up a question for me: In the U.S. many people have 401(k) retirement plans, ...
Flimzy's user avatar
  • 3,401
10 votes
2 answers
266 views

Is Usufruct (where a loaned item produces something) a form of interest?

There is a concept called "Usufruct" (use fruit) where an item is lent, but it produces something during the period of the loan. I lease my two horses to Omar for a year while he uses my house. These ...
Clint Eastwood's user avatar
10 votes
1 answer
269 views

Is it permissable for a scholar to recieve govermental salary?

The Holy Quran in different verses says that the Prophet(PBUH) did not ask any wage for Islam. For example: لِكَ الَّذِي يُبَشِّرُ اللَّـهُ عِبَادَهُ الَّذِينَ آمَنُوا وَعَمِلُوا الصَّالِحَاتِ ۗ ...
Battle of Karbala's user avatar
7 votes
3 answers
6k views

Are islamic Funds and/or ETF's really halaal investments?

According to iShares: The MSCI World Islamic Index offers exposure to stocks from the MSCI World Index which comply with Shariah investment principles. I don't get it, the ETF LSE:ISWD (ISHARES ...
oshirowanen's user avatar
  • 2,401
7 votes
1 answer
6k views

Should a mortgage be treated as loan and hence be deducted from net worth when calculating zakat? [closed]

A mortgage loan, or simply mortgage, is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while ...
Nasir's user avatar
  • 723
6 votes
1 answer
7k views

What is Mudarabah in Islamic Banking? How is this different from traditional banking?

I believe that the Islamic Banking system is pure from impurity of Riba (interest). But some of the Muslims do not see any difference between the Islamic Banking and traditional interest based ...
Anwar's user avatar
  • 1,132
6 votes
1 answer
3k views

Are monthly payments an Islamically acceptable way to receive money for your goods?

I'm sure not many people will agree to such a purchase, but if I went out and bought a phone for $500, with the intention of making a profit, and advertised it as: Pay monthly installments for this ...
user3550's user avatar
  • 2,081
6 votes
1 answer
537 views

What happens in a Murabaha mortgage when the seller defaults?

The question Why is Murabaha not considered Riba? discusses the theoretical difference between Murabaha and riba. I would like to know if there is any practical difference. To be concrete, let's talk ...
Erel Segal-Halevi's user avatar
5 votes
1 answer
2k views

Islamic investments

I've been reading about the Islamic stock market and have been looking at some of the companies in some of the Islamic indexes and/or Islamic funds. I have noticed that they include companies which ...
oshirowanen's user avatar
  • 2,401
4 votes
4 answers
19k views

Is interest entirely haram or can there be exceptions under neccesity?

A query in similar to a question posted on this site (Is interest-based educational loan allowed? ) (this may seem like a similar question, but from a clear angle). Allah says: “Those who devour ...
Aboudi's user avatar
  • 2,257
4 votes
3 answers
692 views

Is it halal to loan out money which people save in your bank?

Original idea from here. My question is, is it halal to loan out money which people save in your bank? Let's say we have an online website. People can 'lend' money to the website (no interest), and ...
user957's user avatar
  • 41
4 votes
1 answer
104 views

Rulings on giving employees equity in a company

I am in the process of joining a start-up and they are offering me equity in the company (5%). Information on Islamic Finance and business dealings is scarce on the web (aside from the general stuff) ...
Ryan's user avatar
  • 181
4 votes
4 answers
9k views

Does Islam Permit Tax Evasion?

Given a question on how an Islamic state handles tax, I'm sure some people are wondering: does Islam permit tax evasion? Tax evasion refers to "trying to get out of paying tax that you rightfully owe,...
ashes999's user avatar
  • 9,775
3 votes
2 answers
4k views

If husband and wife are both working, does wife have to contribute money to running the household?

Is it always man's responsibility to run the house? Does wife has to contribute in case where she has a job? What is the situation where husband is jobless and wife is working? What is Islamic ruling ...
muslim1's user avatar
  • 8,260
3 votes
1 answer
9k views

Is crypto future trading halal or haram?

I recently started exploring crypto and noticed that exchange like Binance.com offers future trading on their platform. So I want to know if this is halal or haram? Binance clearly mentioned in their ...
Iftikhar uddin's user avatar
3 votes
3 answers
8k views

Are we allowed to save money in Islam?

I've heard that Allah does not like someone who stores his money and do not spend on poor. I think this is based on the verses 104:1-2: Woe to every scorner and mocker Who collects wealth and ...
Hammad Nasir's user avatar
3 votes
2 answers
222 views

Does something bought have to be physical?

The question Is real (physical) money traded during online trading? says In Islam, it is a common ruling that the product that a person buys should exist physically. It seems to me that this would ...
DJClayworth's user avatar
3 votes
1 answer
185 views

Shares in company which manufactures non haraam products

If I become a partial owner of a company via investment, i.e. I buy 100 shares in a company which gives me 1% ownership. If the company sells non haraam products, i.e. metal, but has a loan on which ...
user3550's user avatar
  • 2,081
3 votes
1 answer
96 views

Is it necessary for the mudarib to reveal his dealings to the rab-al-mal?

In a mudarabah-based business, does the rab-al-mal have the right to know which businesses the mudarib chooses to invest the capital in? If, for example, the mudarabah contract clearly requires the ...
Muneer's user avatar
  • 133
3 votes
1 answer
719 views

What is money in Islam?

What is considered currency in Islam? Can gold coins, foodstuffs be used as currency? And are these modern bank issued paper notes shariah compliant currency?
user avatar
3 votes
1 answer
2k views

Is intraday trading haraam if you convert losses to investments?

The name "intra-day trader" refers to a stock trader who opens and closes a position in a security in the same trading day. ... Day traders and intra-day traders are at the top of the risk spectrum. --...
user2757215's user avatar
2 votes
1 answer
623 views

Is there a difference between taxes and customs in Islam?

هل هناك دليل شرعي يخرج الضرائب من المكوس ذات العقوبة العظيمة في الإسلام؟ هل فرض النبي أو أحدا من الخلفاء دفع مال علي المسلمين غير الزكاة؟ Is there evidence that makes taxes different than customs ...
Omar's user avatar
  • 51
2 votes
1 answer
456 views

What does Islam say when the husband barely provides for the expenditure and expects the wife to take the financial burden?

I earn more than my husband. My husband's family is needy too. He send half of his earning to his family. But I am the person responsible for house, bills, food etc important for life. He pays ...
FATEMA BEGUM's user avatar
2 votes
1 answer
10k views

Is it permissible to work in a financial institution, if you work in a role that does not directly deal with riba?

I am a Muslim undergraduate student in the US who is contemplating career options and thinking about the finance track that a lot of undergrads gravitate towards (positions in investment banking or ...
geph89's user avatar
  • 59
2 votes
0 answers
106 views

Is Day trading (cryptocurrency) haram?

I've read that buying and selling of something you don't possess is haram however cryptocurrency is different than stocks trading as you don't have to wait for t+2 days for the settlement of the stock....
Masood Khan's user avatar
2 votes
0 answers
97 views

Does one have a profit in an Islamic banking system?

Usually when you open an account in a bank they try to attract you with interest. My question is how so called Islamic banks can -likewise- offer their customers, especially as riba (and interest is ...
Medi1Saif's user avatar
  • 45.6k
2 votes
0 answers
173 views

Is a UK university student loan riba, and if so, is it "necessary" if I have no other means to pay for education or to provide for my family?

I’ve heard student loans deemed as Ribaa. However, for a UK university student loan, the conditions are documented: How much you repay You pay back 9% of your income over the minimum amount of: £17,...
Kever's user avatar
  • 21
2 votes
0 answers
71 views

Investing in halal company that is partnered with company planning to add leverage trading (involves interest) in the future

Salam all, I have invested in a cryptocurrency ICO (like an IPO for cryptocurrencies/crowdsale) after researching into it to find any sort of haram connections or actions taking place by the company. ...
zaid's user avatar
  • 21
2 votes
0 answers
237 views

Is working on coporate finance like budgeting and forecasting halal or haram?

is working on corporate finance like capital budgeting, financial analysis, finance forecasting is permitted in islam. is it halal or haram?
Irshad KP's user avatar
2 votes
0 answers
233 views

Question on Murabaha (selling the product before the end of the contract period)

Assalamu alaikum All, In a Murabaha, can the Buyer/Agent of the product, who promises to buy the product from the Seller at a later point in time, sell the product to his customer (with the Seller's ...
Erly's user avatar
  • 21
2 votes
1 answer
307 views

Ethereum Casper and Proof of Stake

Ethereum is a blockchain technology that allows code to run on it called smart contracts. Its base currency is $ETH. You can think of the ethereum blockchain as a super computer that you can run ...
user avatar
2 votes
1 answer
337 views

What is the ruling on project based jobs?

My question is regarding project based jobs. Most of the time when we are on projects we get projects from multiple clients. For example Case 1 : Abdullah got employed by a private consultancy (XYZ) ...
Abdullah's user avatar
2 votes
3 answers
12k views

If interest is haram, how can a Muslim get a house or a car in modern times?

If interest is haram, how can a Muslim get a house or a car in modern times? The prices these days are so inflated it is impossible for regular people like myself to afford the so-called basic ...
siphr's user avatar
  • 151
1 vote
1 answer
1k views

Shariah Compliant Investment Holding Term/Duration

I've referred to a lot of blogs, articles and documentation about shariah compliance in stock market investments but have failed to find the limits about the minimum duration to hold on a stock before ...
Kamran Ahmed's user avatar
1 vote
1 answer
319 views

Is loopholes are halal in islam

Is loopholes are permissible in islamic finance? I am a bussiness man someone adviced me to buy loopholes to avoid taxes and increase you bussiness rapidly..
Abdul rehman Soomro's user avatar
1 vote
1 answer
78 views

Do the principles of Islamic finance apply to central banking?

Given the current situation in Turkey, I was wondering whether the principles of Islamic finance applied to central banking, as I thought they only applied to the retail banking sector, but President ...
user avatar
1 vote
2 answers
92 views

Resolving an issue regarding shares in a partnership business

I am seeking for a Mashoora on a issue raised due to allocating shares in a partnership business among 4 best friends. The industry was clothing and capital is 400k. I shall name the business ...
Azraar Azward's user avatar
1 vote
1 answer
266 views

How halal banks give private consumption loans that don't earn profits?

While searching for "How did Muslims operate Halal banks if there is no interest". I came to know that banks take some portions/share of profit. My question is that, how do they manage the share or ...
Suntoxsh Pokhrail's user avatar
1 vote
1 answer
92 views

Is it halal to work at this job?

Assalam alikoum My question is related to a job I was working on through the internet before, where I was earning money thats in crypto payment method, so basically I was in the niche of NFTs, I dont ...
OMGit'sMoha's user avatar
1 vote
0 answers
30 views

Islamic financing doesn't make sense (house mortgage)?

I'm aware there are 3 types: I'll buy and then rent it to you and you pay it off slowly I'll buy it and sell it to you for higher price I'll buy and sell it loss/profit will be shared 3 and 1 are ...
Muhammad Umer's user avatar
1 vote
0 answers
13 views

Are Wildlife Conservation Bond halal shariah complaint investments?

How is the Wildlife Conservation Bond generating money to pay out the dividends? Is it Shariah complaint? Ref: https://www.worldbank.org/en/news/press-release/2022/03/23/wildlife-conservation-bond-...
Saqib Ali's user avatar
  • 111
1 vote
0 answers
28 views

Short selling in Islamic finance

Does sharia finance allow you borrow an asset and re-sell it and then purchase it back at a later date in order to return the asset? Assume that no finance charges (interest) is charged on the ...
Jay Sidri's user avatar
  • 111
1 vote
0 answers
451 views

Working at Amazon and receiving Restricted Stock Units as compensation Halal?

Amazon includes RSUs as a part of the total employee compensation. However, the company stock is non-sharia compliant http://testblog.islamicly.com/StockReport/shariah-stock-status-report-amazon-inc-...
Uzair Ahmed's user avatar
1 vote
1 answer
121 views

What is the difference between investment and gambling?

Assalam Alaykum my dear brothers and sisters in Islam. I was recently wondering what is the difference between business investment and gambling in Islam? Since as far as I know investing in businesses ...
user avatar
1 vote
0 answers
58 views

Compound interest=usury?

Usury/Riba is without doubt forbidden in Islam. All contention concerning usury has only ever been about which types of transactions can be categorised as either ill earned or justly earned. Compound ...
Hisham's user avatar
  • 549
1 vote
0 answers
122 views

Selling and buying back stock holdings on the same day

I know short selling is haram because selling whats is not in my posession yet is not permissible, but I am not able to find if these boundary level conditions fall in permissible or not permissible ...
Kamran Ahmed's user avatar
1 vote
1 answer
275 views

Dealing in Interest while Living in a Non-Muslim Country

If a person lives in a country which has an interest based banking system then is he not allowed to work in any company or institution then? As all companies will comply with the government rules ...
user avatar
1 vote
0 answers
96 views

Is exchanging currency through internet is considered as "hand to hand"? [closed]

Salam Aleikom, Islam has put two rules when exchanging currency, which one of them is that it should be hand to hand transaction. These days people are using internet and mobile applications, this ...
Adel M's user avatar
  • 11
1 vote
0 answers
25 views

What concept(s) does the Islamic jurisprudence offer to save a person from ruining himself and his family?

In some of the ahadith which quotes testaments and limits a testament part to one third of the wealth of a person. The Prophet () warns a sahabi not to leave his inheritors (children) poor due to his ...
Medi1Saif's user avatar
  • 45.6k