Muslim investments

Wednesday, 22 November 2006 11:38

Muslim investments allow the UK’s two million Muslims to invest in the market without going against the principals of their faith.

Islamic, or Shariah, law forbids the charging or receiving of interest (riba in Arabic), making many investment funds off limits. While shares and dividends are acceptable, speculation is forbidden.

Additionally, the only companies that it is Halal (permissible) to own shares in cannot have income from alcohol, pork-related products, pornography and nudity, conventional financial services, gambling, tobacco, armaments and human or animal genetic experimentation.

The creation of Muslim investment products typically involves employing a team of scholars to seek ways that will allow Muslims to receive services without breaking the rules of their faith.

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