Investing With Al Barakah

QUESTION:

Will it be permissible to invest money in Al Baraka bank’s investments, more specifically, in Al Baraka’s Tax-Free investment?

Profit is earned in the following way:

The bank earns a profit from its financing activities which are carried out on the basis of Murabaha, Musharaka and Ijarah finance contracts. The profit earned is shared with the investment depositors, based on the bank’s profit distribution model.

Actual profit earned for the month is used to calculate the rate of return to the depositors and can vary month to month. (This information is taken from Al Baraka bank’s website.)

ANSWER:

Our Darul Ifta does not approve of investing in any banks, be it commercial or ‘Islamic’, due to many grey areas. The explanation cited in the query is merely in theory. Whether it is being applied in the manner stated is not certain. We will have to scrutinize and thoroughly go through each clause in the blueprint/contracts before we reach a conclusion.

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

ANSWERED BY:

Mufti Abdul Kader Fazlani

Date: 19 Rabi-ul-Awwal 1447 / 11 September 2025

CHECKED AND APPROVED BY:

Mufti Yacoob Vally Saheb