Islamic Investment Q&A

Your questions about halal investing answered

Is investing halal?

Yes! Islam encourages productive use of wealth. The Prophet (PBUH) was a merchant, and many Sahaba were successful traders. The key is ensuring investments comply with Islamic principles.

What makes an investment Sharia-compliant?

Screening Criteria

Business must be halal (no alcohol, gambling, pork, adult entertainment)

Debt must be less than 33% of market cap

Interest income must be less than 5% of revenue

Liquid assets should be less than 33% of market cap

Common Halal Investment Options

Stocks: Shares in Sharia-compliant companies

Sukuk: Islamic bonds backed by assets

Property: Direct ownership or REITs

Gold: Physical or allocated gold

Commodities: Halal raw materials

Risk and Reward in Islamic Investing

Islamic finance requires sharing both profit and loss. This creates a more equitable system but means you must understand and accept investment risks. Start small, diversify, and increase as you learn.

Getting Started

Begin with our halal savings accounts to build an emergency fund, then explore low-risk investments like Sukuk before moving to stocks and property.