Are the criteria set by Al-Rajhi Company for permitting the purchase of company shares sound in Islamic law, and does the purification process—by allocating a portion of the profit to dispose of the شبهة الحرام (doubtful/unlawful gain)—purify the wealth?

It is forbidden to deal in mixed shares—which are shares of companies whose primary activity is permissible, but they borrow or deposit with interest (riba) or engage in any prohibited dealings—regardless of the percentage of interest or forbidden elements involved. This is because a share represents a common ownership in the company, and those managing the company act as agents for the shareholders. Therefore, if they engage in interest-based transactions, everyone becomes sinful.

The Islamic Fiqh Academies have issued two resolutions prohibiting mixed shares. Purification (tathir) is not sufficient to absolve one from sin, because dealing in mixed shares involves two prohibited matters: 1. Entering into an interest-based contract, which is a major sin. 2. Consuming forbidden interest. Disposing of the interest does not remove the sin of entering into an interest-based transaction.

In summary, it is not permissible to deal in mixed shares, no matter how small the percentage of interest or unlawful elements in them.