What is the ruling on trading shares listed under the Dow Jones Islamic Market Index, such as Microsoft shares?
The fundamental principle in financial transactions is permissibility, except for what the Shariah has prohibited. Contemporary financial transactions are characterized by complexity, and most of them are not free from prohibited or doubtful conditions. Dealing in stocks, whether buying or selling, is at the forefront of this, and most of the transactions that are said to be "Islamic transactions" are not truly so. Therefore, it is necessary to examine the foundational system and the contractual formulas used by the Dow Jones Islamic Index to make a judgment about it, while being cautious because the motivation of these financial institutions is profit by any means. Companies like Microsoft engage in interest-based transactions and borrow with usury, which mixes lawful money with unlawful.
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