Investment ; permissible ? : investing in a fund that earns interest

Fatawa Question

Bismillah Ar-Rahmaan Ar-Raheem Dear brother Monzer Kahf, Assalaamu Alaykum Wa Rahmatullah Wa Barakatuh I need an urgent clarification on the above subject. I and some brothers and sisters have set up an organization 10 years ago with a view of fighting poverty primarily among our Muslim brothers and sisters. We do help non-Muslims through our empowerment programs. Our funds come from : • Zakah • Commercial enterprises • Government subsidies • Banks • Well-wishers To obtain these funds, there is a hard work behind, as they come irregularly. We are sometimes in difficulties to meet our monthly administrative expenses. Alhamdulillah we have never got recourse to bank overdrafts. My question is this. Are we allowed to place our funds on fixed deposits in view of obtaining interests to run our projects and meet administrative expenses ? Does Islam take into consideration the fact that to-day's economic system is different from the one prevailing during the prophet's time. Is the question of devaluation of money and inflation elements that can justify the placement of money on fixed deposits ? Brother Kahf ! I know you are a busy person having to attend to you heavy agenda. But please for sake of Allah Subhaanahuu Wa Ta'ala advise me. Jazaak Allah Khair

Fatwa

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Publication Date

2009-04-20

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Banks
• Islamic jurisprudence
• Economic systems
• Government
• Inflation(Finance)
• Investments
• Wages
• Alms tax
• Mutual funds
• Bank deposits
• Usury
• Commercial companies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-734380

• APA
• MLA
• AMA