What is the ruling on investing in companies that generate large profits but deal with usurious banks, or whose commercial dealings are not definitively known, such as food companies that may sell their products to Muslims and non-Muslims?
Two conditions are required for the permissibility of purchasing shares in companies: that the company's activity be permissible, and that the company does not deposit any part of the shareholders' money in usurious banks. It is permissible to subscribe to a company through a usurious bank if these two conditions are met and the bank's role is not to lend the price of the shares. It is preferable for the intermediary to be an Islamic bank. It is not permissible to sell shares of a company unless it engages in commercial activity.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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