Is It Possible to Invest Halal? What are Halal Investment Instruments?

One of the most curious issues of Muslim citizens belonging to the religion of Islam is whether there is a way to multiply the money they have accumulated in halal investment tools? What are halal investment instruments? We have compiled it for you in our article.

An investment that follows all the rules in the Quran, the holy text of Islam, is considered halal. Halal investment instruments are instruments that carefully analyze religious rules and allow interest-free investment. The most important rule is that the investment does not earn interest. This is due to the Qur'an, the holy book of Muslims, which states: "It is forbidden to earn income from inactivity". According to this rule, profit sharing is allowed because it is the result of hard work; not interest earned in a savings account. In Islam, where interest is considered unlawful, it is possible to earn income from many halal investments. Investments in real estate are among the halal investment recommendations. This is a method of investing the savings of Muslims who wish to invest in a commercial property for the sole purpose of developing halal businesses. Surah Al-Baqarah, verse 275. Those who eat interest rise up only as one who is struck by the devil rises up. This is because they say, "Exchange is like interest." But Allah has made exchange lawful and interest unlawful. So whoever receives an admonition from his Lord and renounces interest, then what he took before shall be his. His case is up to Allah. (Allah will forgive him.) And whoever returns to interest, they are the inmates of Hell. They will abide therein forever.

Verses in the Holy Qur'an on Interest:

Surah Al-Baqarah 276. In the verse Allah destroys interest and increases charity. Allah does not love any sinful ingrate. Surah Al-Baqarah 278. In the verse You who believe! Beware of disobeying Allah and give up what is left of the interest if you are true believers. Verse 130 of Surah Al-Imran. In the verse You who believe! Do not take interest, multiplied many times over. Beware of disobeying Allah so that you may attain salvation. Surah Al-Nisa: 160,161. In the verse And because of the oppression of the Jews, and because they hindered many from the Way of Allah, and because they took interest when it was forbidden to them, and because they devoured the wealth of the people unjustly, We made unlawful for them that which was lawful for them before. And We prepared for those among them who disbelieved a painful punishment. Verse 39 of Surah Rûm. In the Verse Whatever you give in interest so that it may increase in people's wealth, it will not increase in the sight of Allah. But whatever you give in zakat, seeking Allah's acceptance, those who do that are the ones who increase their rewards many times over. You need to be an authority to say what is permissible or not permissible according to our religion. We are not religious authorities, but we are just stating the obvious.

Repo: Repo is a sales transaction that commits a short-term security to be bought back by its original seller at the end of a certain period of time. The investment realized through repo does not earn interest. For this reason, investments made through repo are referred to as halal earnings. Investment Fund: Investments made with investment instruments in the capital market are known as mutual funds. When using investment instruments, if you prefer those managed in an interest-free manner, you will make a halal investment. Interest-Free Investment Using Stocks: The important thing here is that the company whose shares will be purchased records transactions in the 'halal circle'. Investments in stocks are preferred long-term investments. Companies record sales from their valuable papers in transactions made through the stock exchange. The stock you buy appreciates as the company makes a profit. We have already noted that the choice of company is important. For example, drinking is considered haram in Islam. Therefore, buying shares in a company that produces and sells liquor will make your return haram.   The investment information, comments and recommendations contained herein do not constitute investment advice. Investment advisory services are provided individually, taking into account the risk and return preferences of individuals. The content, comments and recommendations contained herein are in no way directive in nature.