Is it permissible to buy and sell company shares on the stock exchange if the following criteria are met: that the percentage of interest-bearing debt is 33% or less of total revenues, that interest income and other prohibited income is 5% or less of total revenues, and that the primary activity is dealing with tangible assets, usufructs, and services, not granting financial facilities, provided that tangible assets and usufructs are not less than 10% of the company's total assets?
It is not permissible to buy shares in a company that deals with usury, whether through lending or borrowing, or that deals with other prohibited matters, even if to a small extent; because the forbidden return becomes a common part of its funds. A resolution has been issued by the Islamic Fiqh Academy stating the impermissibility of investing in companies whose primary purpose is forbidden, or which deal with usury in some of their transactions. If a person buys shares while unaware and then becomes aware, it is obligatory for him to withdraw from them. This prohibition is clear based on the general evidence from the Qur’an and Sunnah regarding the prohibition of usury, and because buying shares in this case means the buyer’s participation in dealing with usury.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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