Investment ; permissible ? : millennium Shari’ah alpha fund

Fatawa Question

[Question One] Dear Professor Kahf Salaam Alaykum Wa Rahmatullah Wa Barakatuh. I hope you and your family are well. We have been approached by millennium finance corporation a subsidiary of Dubai Islamic bank to invest in their Shari'ah Alpha fund. I have asked for their Fatwa on the fund for your approval before we consider the investment. The fund structure and Fatwa are attached. I look forward to getting your decision on this fund at your earliest convenience. The fund is closing at the end of this month. Much obliged, [Question Two] Thank you for your thorough assessment of the opportunity and your candid view. I agree with you particularly on points 1 and 2. This is why I sought your advice despite the other 2 Shari'ah board approvals for the product. On point 3, our focus is Nigeria but we are not averse to some international diversification for our investors particularly if it also provides liquidity management in a Shari'ah compliant manner. This is our major challenge as our company is the only Islamic financial institution in Nigeria to date and liquidity management tools are severely limited for the time being. I would welcome any short term suggestions you might have to address this. Once again, Jazaka Allah Khair for your wonderful guidance. Best regards, Hajara

Fatwa

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Publication Date

2008-07-17

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Financing
• Investments
• Liquidity(Economics)
• Money
• Speculation
• Resale on profit
• Mutual funds
• Bank deposits
• Finance companies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-734368

• APA
• MLA
• AMA