Where can a Muslim invest his money in a Halal way given that Islamic banks lend with interest?
A Muslim is required to seek out what is lawful () and avoid what is unlawful (). Therefore, it is impermissible to deposit money in interest-based (riba-based) banks because they operate on usury. As for Islamic banks and financial institutions, they strive to reject usury and forbidden transactions, serving as an alternative for Muslims who wish to ensure their dealings are lawful. Therefore, it is advisable to seek out the nearest Islamic bank to deposit money therein. Even if there are some reservations about Islamic banks, some evil is lesser than other evil, and what cannot be attained in its entirety should not be abandoned in its entirety. If Islamic banks are unable to accommodate Muslims' funds and gain their trust by convincing them that their transactions conform to Allah's law, this is a serious failure that must be remedied.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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Where this answer came from
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- Ftawy
- Original fatwa ID
- 38409
- 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