What Are Halal Investing Rules?

What are Halal investing rules? What makes an investment Halal? Is investing in shares Halal? Is forex trading Halal? What are the options available to me as a Muslim who cares about the Halalness of his or her money? How can religious Muslims invest their money without worrying about interest rates or any other issue which is forbidden in Islam?

There are tons of factors Muslims need to think about while investing their money in a Halal manner. In practical terms, these are difficult questions to answer as modern-day investing has become complicated.

You need to confront quite a few challenges apart from knowing the basics of what the Halal investing rules are. Let us discuss these challenges one by one to get a sense of how Muslim investors can make their investment decisions in modern-day economies without jeopardizing their religious teachings.

Related: How To Keep Your Investment Halal?

Challenges For Halal Investors

1. Definition

There are plenty of reasons to do so. Making a profit is perhaps one of the strongest ones. And, there are so many ways to invest your money to increase your wealth. However, Muslims are required to follow certain Halal investing rules which are ethical.

To understand the rationale behind the Halal investing rules Shariah has prescribed for us, we need to know why people generally invest.

Why Do People Invest?

The most important motive people have behind investing their money is accumulating wealth. By so doing they aim to outpace inflation and increase the real value of their money.

Generally speaking, people invest their money to achieve all or any one of the following objectives.

• Grow their wealth
• Save for retirement or other purposes
• Reach financial goals
• Start a business
• Reduce taxable income
• Earn without hard work
• Enjoy tax benefits without breaking any laws

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What Are Halal Investing Rules?

What makes an investment Halal? What are Halal investments? How do I invest in Halal stocks? The modern financial system has made investing very complicated.

There is no doubt that there are plenty of opportunities for you to invest.  But with all these choices comes a fair bit of confusion, too.

Whatever your objectives might be for investing your money, you have to follow the below-mentioned Halal investing rules so that you do not violate the injunctions stipulated by Allah in the Quran and Sunnah.

1. Do not take riba or interest. Rather share in profit and loss
2. Do not invest your money in a business that is prohibited by Islamic law
3. Do not involve in gambling, deceit, or forgery
4. Invest your money in ethical industries only such as telecommunications, infrastructure, healthcare, tourism, modest fashion, food, utilities, and technology.