Many people seek to invest their money; In order to increase and maintain it, but this financial investment must be applied in accordance with the halal and applied methods in Islam, which guarantee obtaining a financial profit free of usury, and this is referenced by the words of Allah(God)Almighty in the Quran: “Those who devour usury will not stand except as stand one whom the Evil one by his touch Hath driven to madness. That is because they say: “Trade is like usury,” but Allah hath permitted trade and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for Allah (to judge); but those who repeat (The offence) are companions of the Fire: They will abide therein (for ever).” Quran surah Al Baqarah 275 (QS 2: 275).
It can be concluded from this noble verse that selling and exchanging money is permissible in Islam, while usury is one of the things that are prohibited.
It is the investment of the money owner for his money individually, or by buying real estate or durable goods, and the money owner must make sure that the investment method he chooses is halal and far from any prohibition.
Investing using Islamic speculation:
It is a partnership between two persons, one of whom is a capital owner, and the other is a specific business owner; Where the first person has money, but he does not have enough experience to invest it, while the second person has the appropriate experience to implement investment operations, whether they are service, commercial or industrial, and each of the two people agree on distributing the returns of financial profits in a proportion to be agreed upon between them.
It is the participation of two or more people in a specific investment field, whether it is in trade, agriculture or industry, and each of these people provides work and money, provided that each of them shares the profits according to what is agreed upon, and in case of loss, they are also distributed among them according to the share of each person. Of them in money, and in light of the legal basis, participations are considered permissible and permissible unless there is any legal text prohibiting them.
Investing in the capital of joint stock companies:
The jurists have permitted financial investment in it; Because it depends on participation in losses and profits provided that its work is within a halal field. The capital of these companies is divided into a group of shares, and each share of them constitutes a financial share. The shareholder is considered a partner in these companies, and the results of their work are calculated at the end of each financial period Where profits are distributed to stockholders in accordance with legal controls, investment in common shares is considered halal as long as the issuing companies implement their operations in halal ways.
These banks were established to raise money by relying on Islamic speculation; The contract between the investors and these banks is a speculative contract, and it adopts the rule of (sheep for fine);
i.e. participation in losses and profits, and the Islamic bank works on investing these funds; Through leasing, musharaka, murabaha, and istisna, and any profit obtained by the bank is distributed between it and the owners of these funds, and the supervisory bodies of Islamic banks are interested in following up on these financial operations based on the provisions of Islamic Sharia.
Financial investment tools Financial investment tools are financial assets, and investors get them in return for paying sums of money, and the following is a group of the most important types of these tools:
They are sukuk used to represent long-term loans, bonds are issued through companies in the form of negotiable certificates of a standard value, and single issuer bonds offer equal rights to their owners, and provide them with periodic interests.
It is the ownership of rights for their owners in the net assets of public joint stock companies, and guarantees the right to obtain shares of the profits of these companies. The liability of stockholders is limited according to the amount of their ownership in the companies. These shares are classified into two main types:
Shares that do not have any privileges over other types of shares, but their owners obtain a right to the company’s assets, a right to transfer its ownership, and a right to receive dividends from the profit distributed to the company.
They are shares that form the area between common shares and bonds; It combines in its characteristics both of them, resembling bonds with the stability of their returns, while similar to common stocks in its presence permanently.
It is a mixture of investment tools; It contains two or more assets, and the quality and quality of the assets of this portfolio varies, it may contain real assets such as gold or financial assets such as stocks, but their quality may be high or low returns.