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The question

What is the ruling on trading shares of industrial companies circulated in Saudi Arabia, such as SABIC and Cement, given the ignorance of how they manage their money?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

The default ruling is that it is permissible to invest in companies unless they deal in prohibited activities, because a share is an undivided portion of the company's capital. It is not permissible to invest in companies that deposit a portion of shareholders' money in usurious banks to guarantee against loss and to earn usurious interest, as this constitutes clear consumption of usury. A shareholder in suspicious companies that engage in usury becomes a partner in the business and the capital, and is considered one who consumes usury or appoints someone to do so. Fatwas have been issued by the Permanent Committee, the Islamic Fiqh Academy, and the Islamic Fiqh Academy of the Muslim World League, prohibiting investment in companies that deal in usury.

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
17887
Imported
Translation status
Source text, unreviewed
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