Are the activities carried out by Tharaa Capital Company (real estate finance, consumer finance, car finance, asset management, insurance brokerage, financial leasing, and debt restructuring) permissible in Sharia for subscribing to its shares?
For trading in shares to be valid, it is stipulated that they must be pure, meaning that the company's activity must be permissible and that it does not deal with usury, whether through deposits or loans. As for the mentioned activities (real estate finance, consumer loans, car finance, financial leasing, and insurance brokerage), they may be permissible with their controls, or forbidden if they are usurious. Debt restructuring is considered a forbidden usurious transaction.
The vast majority of joint-stock companies do not adhere to Islamic law; in fact, some scholars stipulate that a company's shares must be Islamic and have a supervisory board. Therefore, it is advisable to avoid investing in companies that predominantly deal with dubious matters, and to seek clear and investment fields, in accordance with the Prophet's (peace be upon him) saying: "Leave that which makes you doubt for that which does not make you doubt," and "Indeed, the lawful is clear, and the unlawful is clear, and between them are doubtful matters."
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