What is the Shariah ruling on some Islamic banks entering international stock markets?
If banks engage in buying and selling on the stock exchange according to the internationally recognized stock exchange system, this is prohibited because it involves interest-based lending and delayed possession. However, transactions are permissible if the following conditions are met: that buying and selling are limited to the amount of capital, that possession occurs without delay, that the bank is able to dispose of the currency or asset it purchased, and that the investment in shares is in permissible assets. As for trading in gold and silver, it requires immediate possession and equivalence in weight, which is not possible on the stock exchange. It is well-known that the stock exchange violates most of these conditions, as it is based on usurious lending and paper trading.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/30649
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 30649
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy