Is My Child Trust Fund Halal to Use for Hajj?

Answered by Shaykh Muhammad Carr

Question

A Child Trust Fund (CTF) account was opened for me as a child, funded initially by government contributions and grown through Shariah-compliant investments.

• Are there any additional considerations to determine whether this money is halal beyond its Shari‘a certification?
• While Shari‘a-compliant, the investments include companies like Google and Shell, which may not be strictly ethical. I do not plan to continue investing further, but would it be discouraged to use the existing amount for my and my family’s obligatory Hajj?

Answer

In the Name of Allah, the Most Merciful and Compassionate.

Thank you for your question.

Shari‘a certification is generally considered sufficient for ensuring Shari‘a compliance, provided that the board members possess integrity (‘adala) and competence (kifaya), which is typically the case by the grace and mercy of Allah.

Shari‘a compliance typically considers the ethics of investments as well. As such, you may use the investment amount for hajj without any compunction.

Allah says,

“And proclaim to the people the Hajj; they will come to you on foot and on every lean camel, coming from every distant pass”. [Quran, 22:27]

Please ensure you also pay the zakat due on the fund, which amounts to 2.5% of the total market value of the shares. Allah (Most High) says:

“And establish prayer and give zakat.” [Quran, 2:43]

Allah says,

“And proclaim to the people the Hajj; they will come to you on foot and on every lean camel, coming from every distant pass.” [Quran, 22:27]

I pray this is of benefit and Allah guides us all.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Dr. Muhammad Abu Bakr Badhib

Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door to students. As an imam, he has the unique opportunity to serve his community in daily life.

In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari‘a Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.