Is Investing in the Stock Exchange Halal?

Question:

Is investing in the Stock Exchange halal?

Answer:
Wa ‘alaykum assalam wa rahmatullah wa barakatuh.

I pray you are well.

The investment industry is riddled with practices that do not comply with Islamic Finance ethics. This ranges from gambling to interest. Many practices, such as hedging, are questionable at best.

The detriment of earning one’s income from such means is clear, and the lack of baraka is also palpable. The recent fiasco with GameStop is a clear example of this.

Investing in the stock exchange is only permissible when certain conditions are met. You can find them in this answer. Otherwise, it is better to look for an alternative means of earning an income. Trust me, you will be much safer this way on the Day of Judgement.

May Allah grant you the best of both worlds.

[Shaykh] Abdul-Rahim Reasat

Checked and Approved by Shaykh Faraz Rabbani

Shaykh Abdul-Rahim Reasat began his studies in Arabic Grammar and Morphology in 2005. After graduating with a degree in English and History he moved to Damascus in 2007 where, for 18 months, he studied with many erudite scholars. In late 2008 he moved to Amman, Jordan, where he continued his studies for the next six years in Sacred Law (fiqh), legal theory (Usul al-fiqh), theology, hadith methodology, hadith commentary, and Logic. He was also given licenses of mastery in the science of Quranic recital and he was able to study an extensive curriculum of Quranic sciences, tafsir, Arabic grammar, and Arabic eloquence.