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Profit sharing and investing in al-Raajihi shares

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Publication : 02-06-2008

Views : 12784

Question

What is the ruling on profit sharing (mudaarabah) and investing in shares of al-Raajihi Bank?.

Answer

Praise be to Allah.

It is permissible to engage in profit-sharing and investment in shares of al-Raajihi bank so long as they are pure shares and not mixed (i.e., shares in purely halaal ventures). Dr. Muhammad al-‘Usayni (may Allaah preserve him) included shares in al-Raajihi among his list of permissible shares.

See:

http://www.halal2.com/main.asp?id=69

This applies if the investment is in the shares of al-Raajihi itself; as for the al-Raajihi funds that deal with local or Gulf shares, they are not limited to pure shares; rather they deal with mixed shares, and the view of the majority of scholars is that it is haraam to deal in mixed shares.

See the answer to question no. 83969 and 112445

And Allaah knows best.

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Source: Islam Q&A