What is the ruling on the profits from shares in a government telecommunications company that deposits its money in usurious banks, and is a Muslim absolved of sin if he pays his bills with these profits?
Two conditions are stipulated for the permissibility of purchasing shares: that the company's activity be permissible, and that the company does not deposit a portion of the shareholders' money in usurious banks to earn interest or borrow with usury. If its activity is permissible but it deals with usury, then it is a mixed company. A group of contemporary scholars has deemed it impermissible to purchase shares of any company that deals with usury, and this is the resolution issued by the Islamic Fiqh Academy of the Organization of Islamic Cooperation and the Muslim World League. This opinion is the most cautious and absolves one's responsibility. According to the view that prohibits investing in such companies, the shareholder is not absolved of sin by merely spending the usurious interest on the company's bills; rather, he must exit the company. As for the profits resulting from the company's permissible transactions, they are lawful.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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