Having shares in the Islaamic Bank

Reference: Fataawa al-Lajnah ad-Daa.imah lil-Buhooth al-‘Ilmiyyah wal-Iftaa. – Volume 13, Page 507, Fatwa No.4512

Question: The Islaamic Bank has shares for sale and the value of each share is one hundred and ten US dollars ($110). And that which we have understood is that the bank in question does not trade in ribaa and that the money from the sale of the shares will be used in trading activities which are free from any dealings in interest. The profits will then be divided amongst the shareholders. So out of concern of falling into that which is impermissible, we request you to give a fatwa about whether this is permissible or not.

Response: It is permissible to have shares in a bank which does not trade in ribaa, and the profits which accrue from these shares are the result of trading which is not haraam, so it is halaal.

And with Allaah lies all success and may Allaah send prayers and salutations upon our Prophet (sal-Allaahu ‘alayhi wa sallam) and his family and his companions.

Abu 'Abdullaah

About Abu 'Abdullaah

- from London, UK. He is a graduate of the Islaamic University of Madeenah, having graduated from the Institute of Arabic Language, and later the Faculty of Sharee'ah in 2004.