What is halal investing?

While halal often refers to food, it can also describe which investments are allowed within the Islamic faith. Halal investing is a religious form of investing that complies with Islamic law or Shariah. Islamic scholars help shape halal investing guidelines around topics such as interest, debt, risk and social responsibility.

Is investing a Shariah based investment?

Investing in highly risky investments is discouraged by Shariah. Short-selling and uncertain investments, such as options, may be prohibited depending on your interpretation. Because Islamic law prohibits gambling, any form of investing dependent on luck or uncertain events in the future is not allowed.

Are sukuk investments halal?

Islamic principles therefore prohibit investment in conventional bonds and other debt securities that generate interest income. Sukuk investments are halal because they seek to generate profit from the investment income of their underlying assets, instead of interest and principal payments.

What are the best investments for Muslims?

Fixed return investing is the bread and butter of most mainstream investment portfolios – but for Muslims, it is extremely difficult to find fixed income products. The two options available are sukuk and property. Read more in our Halal 101 fixed income guide. 2. Property