What is halal investing?

While halal often refers to food, it can also describe which investments are allowed within the Islamic faith. Halal investing is a religious form of investing that complies with Islamic law or Shariah. Islamic scholars help shape halal investing guidelines around topics such as interest, debt, risk and social responsibility.

Is investing a Shariah based investment?

Investing in highly risky investments is discouraged by Shariah. Short-selling and uncertain investments, such as options, may be prohibited depending on your interpretation. Because Islamic law prohibits gambling, any form of investing dependent on luck or uncertain events in the future is not allowed.

How to become a Shariah-compliant/halal investor?

In order to become a successful Shariah-compliant/Halal investor, you need to dedicate some time to understanding its terms and nuances, and moreover search for Halal companies to invest in. Sukuk is an Islamic financial certificate similar to a bond in Western finance.