Resolutions of Iftaa' Board



Resolutions of Iftaa' Board

Resolution No.(68): “Ruling on Investing and trading in Stocks of Public Shareholding Companies“

Date Added : 02-11-2015

 

Resolution No.(68): “Ruling on Investing and trading in Stocks of Public Shareholding Companies“

Date: 5/8/1424 AH corresponding to 1/10/2003 AD.

 

The Board received the following question:

What is the Ruling of Islamic Sharia on investing and trading in stocks of public shareholding companies?

Answer: All success is due to Allah.

After careful study and deliberation, the Board believes that investing and trading in stocks of public shareholding companies, which deal in illegal business such as trading in wine or producing it, is forbidden, and the same ruling applies to similar companies.

As regards companies that deal in lawful business, which was slightly mixed with that which is unlawful such as dealing in usury, investing in them is permissible, provided that the investors remove the usurious amounts from their profits and give them to the poor and needy Muslims. And Allah Knows Best.

Iftaa` Board

Chairman of the Iftaa` Board, Chief Justice, Izz Al-Deen Al-Tamimi

   Dr. Mohammad Abu Yahia     

  Dr. Ahmad Hilayil     

    Sheikh Mahmoud Shwayyaat

Dr. Yousef Gheezaan

Dr. Wasif Al-Bakhri

 Sheikh Saeid Hijjawi

Sheikh Na`eim Mujahid

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Summarized Fatawaa

What is the ruling on the prayer of the individual following the imam whose prayer is broadcasted via television?

Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
 
Among the conditions for the validity of following an Imam (Sihhat al-Iqtida’) is that the Imam and the follower (Ma’mum) must be in the same location. Therefore, the prayer of one who follows an Imam whose prayer is being broadcast via television from a distant location is not valid. However, if the follower is with the Imam in the same mosque, the prayer is valid. And Allah the Exalted knows best.

Can Zakah or Zakat al-Fitr be given to a poor brother?

Yes, it is allowed to give Zakah or Zakat al-Fitr to a poor brother, as he is considered among the eligible recipients.

What is the ruling of Islamic Law on selling gold or silver in installments or for a differed price?

Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
 
It is prohibited (haram) to sell gold or silver in installments or for a deferred price; rather, immediate hand-to-hand exchange (Taqabud) is mandatory, otherwise, it is considered usury (Riba). The Messenger of Allah ﷺ said: 'Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, and salt for salt—like for like, hand to hand. Whoever increases or asks for an increase has engaged in Riba; the receiver and the giver are the same in this regard.' (Narrated by Muslim). Furthermore, when exchanging new gold for used gold, they must be of equal weight, or it falls into Riba.
 
The permissible solution (al-makhraj) is for the merchant to purchase the used gold for cash first, and then sell the new gold for cash in a separate transaction. However, the price must be paid during the sitting of the contract (Majlis al-Aqd) for both deals. Alternatively, the jeweler may take the used gold with the intent of remodeling or repairing it, and then charge a fee for the craftsmanship or repair work. And Allah the Exalted knows best."

What is the ruling on applying perfume while fasting?

Applying perfume does not break the fast. However, it is better to avoid it, as fasting is a practice of simplicity and restraint, while perfume is a form of luxury.