Stock Market

QUESTION:

Is it permissible to invest in stocks and shares?Are all stocks and shares based on interest? I have seen many Muslims seek Shari’ah complaint alternatives but they don’t seem different to the main sources.

ANSWER:

From the outset, it is imperitive to bear in mind that earning a Halaal income is the duty of every person, as taught to us in the Mubaarak Ahaadith. However, when seeking Halaal income, it is necessary that the income is Halaal and pure. If one’s income is Halaal and pure, then one’s Ibaadat will be accepted in the court of Allah Ta’ala, while the consequences of Haraam wealth is disastrous in both this world and the hereafter. Rasulullah Salallahu Alaihi Wasallam prophesized that a time will dawn upon the people when they will not care whether their income is derived from Halaal or Haraam sources.

عَنْ أَبِي هُرَيْرَةَ، قَالَ قَالَ رَسُولُ اللَّهِ صلى الله عليه وسلم يَأْتِي عَلَى النَّاسِ زَمَانٌ مَا يُبَالِي الرَّجُلُ مِنْ أَيْنَ أَصَابَ الْمَالَ مِنْ حَلاَلٍ أَوْ حَرَامٍ النسائي # 445

Hadrat Abu Hurairah Radiallahu Anhu narrates that Nabi Salallahu Alaihi Wasallam is reported to have said, “A time will dawn upon people when a man will not care from where he acquires his wealth; whether he acquires it from Halaal sources or Haraam sources.”

In another Hadith, Nabi Salallahu Alaihi Wasallam explained the harms of Haraam:

عَنْ أَبِي هُرَيْرَةَ رَضِيَ اللهُ عَنْهُ قَالَ: قَالَ رَسُولُ اللَّهِ صلى الله عليه و سلم “إنَّ اللَّهَ طَيِّبٌ لَا يَقْبَلُ إلَّا طَيِّبًا، وَإِنَّ اللَّهَ أَمَرَ الْمُؤْمِنِينَ بِمَا أَمَرَ بِهِ الْمُرْسَلِينَ فَقَالَ تَعَالَى: “يَا أَيُّهَا الرُّسُلُ كُلُوا مِنْ الطَّيِّبَاتِ وَاعْمَلُوا صَالِحًا”، وَقَالَ تَعَالَى: “يَا أَيُّهَا الَّذِينَ آمَنُوا كُلُوا مِنْ طَيِّبَاتِ مَا رَزَقْنَاكُمْ” ثُمَّ ذَكَرَ الرَّجُلَ يُطِيلُ السَّفَرَ أَشْعَثَ أَغْبَرَ يَمُدُّ يَدَيْهِ إلَى السَّمَاءِ: يَا رَبِّ! يَا رَبِّ! وَمَطْعَمُهُ حَرَامٌ، وَمَشْرَبُهُ حَرَامٌ، وَمَلْبَسُهُ حَرَامٌ، وَغُذِّيَ بِالْحَرَامِ، فَأَنَّى يُسْتَجَابُ لَهُ؟ صحيح مسلم #101

It is narrated from Hadrat Abu Hurairah Radiallahu Anhu that Nabi Salallahu Alaihi Wasallam is reported to have said, “Almighty Allah is Pure and only accepts that which is pure. And verily Allah Ta’ala has commanded the believers that which He has commanded the Messengers. Allah Ta’ala states: “O Messengers! Eat of the Tayyibat (pure and wholesome) and perform righteous deeds.” Allah Ta’ala states: “O you who believe! Eat of the pure (lawful things) that We have provided you.” Then Nabi Salallahu Alaihi Wasallam mentioned a person who undertakes a lengthy journey due to which he is disheveled and dusty. He spreads out his hands towards the sky saying “O Rabb! O Rabb!”, whereas his food is Haraam, his drink is Haraam, his clothing is Haraam, and he has been nourished with Haraam, so how will his Dua be answered?

The above narrations illustrate the importance of acquiring Halaal sustenance. Now, coming to your query regarding the stock market, Faqeehul-Ummat Hadhrat Mufti Mahmood Saheb Rahimahullah, after the mechanism of the stock market was explained, responded by saying,

“In terms of the Shari’ah, the buying and selling of shares in the company set up is not a Bay’ (Sale), nor Ijaarah (Leasing), nor Shirkah (Partnership), nor Mudharabah (Sleeping partnership), nor Qardh (Loan), nor ‘Aariyah (Loan), nor Wade’at (Trust). It does not fall in the category of any Shar’ee transaction. One should therefore refrain from entering such a transaction.”

Based on the above, we at the Darul Ifta, advise abstention from investing or trading on the stock markets.

We generally advise people to save their money and then invest it in gold; or a few like-minded people can pool together and purchase properties to enjoy a rental income. This will avoid one having to deal with banks and entrap oneself in the sin of Riba (interest).

May Allah Ta’ala bless each and every one with Halaal, pure and beneficial wealth, Aameen!

ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!

ANSWERED BY:

Mufti Abdul Kader Fazlani

Date: 26 Muharram 1448 / 12 July 2026

CHECKED AND APPROVED BY:

Mufti Yacoob Vally Saheb