Commerce, Finance & Investment
Trade, work, investing, banking and the financial products you use.
Trade & Business
The Fiqh of Self-Checkout Machines
Using self-checkouts is permissible: the displayed price is the offer and payment is the acceptance.
Reviewed by Mufti Faraz Adam ConditionalTrade & BusinessIs selling books on Amazon Kindle permissible?
Receiving royalties from Amazon Kindle sales is permissible if you hold the intellectual property rights to the book.
Reviewed by Mufti Faraz Adam ImpermissibleTrade & BusinessIs dropshipping permissible?
Typical dropshipping sells goods not owned or possessed, which fails Shariah rules; compliant alternative models are offered.
Reviewed by Mufti Faraz Adam ConditionalTrade & BusinessIs subleasing permitted? What are the conditions and requirements?
Subleasing is allowed if permitted or customary; charging more than the head rent needs a different currency or added value.
Reviewed by Mufti Faraz Adam ConditionalTrade & BusinessCan one hoard fuel to maximise profit margins?
Holding back low sulphur diesel is not prohibited unless it causes economic harm or regulators discourage it; then it is hoarding.
Reviewed by Mufti Faraz Adam ConditionalTrade & BusinessAre Reverse Auctions or Dutch Auctions Permissible?
Dutch auctions are permissible if the terms are compliant, the items are lawful, and no other Shariah rule is breached.
Reviewed by Mufti Faraz Adam ConditionalTrade & BusinessWhat is the ruling of trading memorabilia coins with a mark up to their face values?
Collectible coins and notes may be sold above face value if they are no longer legal tender and are not treated as money.
Reviewed by Mufti Faraz Adam Requires detailTrade & BusinessIs it permissible to rent a property to one who sells cigarettes? Can I have shares in a cigarette manufacturing company? Can I sell cigarettes?
Renting to a shop that sells cigarettes is allowed, but buying tobacco shares or selling cigarettes yourself is not.
Answered by Mufti Faraz Adam ConditionalTrade & BusinessIs possession necessary at the time of the transaction?
Taking possession is not required for a sale to be valid, except in currency exchange and gold or silver trades.
Answered by Mufti Faraz Adam ConditionalTrade & BusinessIs it permissible to act as an agent in the following scenarios?
You may buy the licence in your kafeel's or employer's name and supply it to the customer, provided your capacity is made clear.
Answered by Mufti Faraz Adam PermissibleTrade & BusinessAm I entitled to a return of a payment for an unavailable service?
The gym membership is a lease, so you are entitled to a refund for the days the gym was closed.
Reviewed by Mufti Faraz Adam PermissibleTrade & BusinessSelling items with the declaration ‘sold as seen’
Classically, selling 'as seen' is permissible with no recourse for faults, but local consumer law applies and it is not advisable for faulty goods.
Answered by Mufti Faraz Adam ConditionalTrade & BusinessBrokerage and charging commissions
Simsar is an independent broker, dallal an employed one. Brokers may charge commission as a percentage or a fixed rate, not an open-ended amount.
Answered by Mufti Faraz Adam ConditionalTrade & BusinessCan I make use of mannequins in my store?
Mannequins with discernible faces are not allowed; headless or defaced ones may be used, ideally with detailed bodies covered.
Answered by Mufti Faraz Adam ImpermissibleTrade & BusinessWhat is the ruling on exchanging Rands for Rands?
Same-currency exchange must be equal and on the spot, so giving three R20 notes for R100 with the rest later is not permissible.
Answered by Mufti Faraz Adam Requires detailTrade & BusinessWhat is the ruling of deferred change after purchasing an item?
Change owed by a shopkeeper is a trust in his hands, not a currency exchange or a loan.
Answered by Mufti Faraz Adam PermissibleTrade & BusinessIs a 99 year lease agreement Shari’ah compliant?
A lease must have a defined term; a 99-year lease is valid, while a permanent lease is void.
Answered by Mufti Faraz Adam ConditionalTrade & BusinessI am considering starting a cake business and wanted to know the Islamic ruling on whether I can sell birthday cakes?
Making and selling birthday cakes is permissible as long as the ingredients are halal.
Answered by Mufti Faraz Adam ConditionalTrade & BusinessHow can my business of buying and selling books be Shari’ah Compliant?
Selling before possession is not allowed; the book deal is compliant if structured as Salam and Ismail takes possession first.
Answered by Mufti Faraz Adam ConditionalTrade & BusinessIs it permissible to buy and sell replica items?
Buying and selling replica products is permissible if it is legal locally and customers are told they are replicas.
Answered by Mufti Faraz Adam ImpermissibleTrade & BusinessCan a retailer retain the deposit if the transaction is cancelled upon the request of the purchaser?
A sale cannot be cancelled unilaterally; if it is mutually rescinded, the seller must return the deposit and cannot keep it.
Answered by Mufti Faraz Adam ConditionalTrade & BusinessIs it permissible to sublease?
Subleasing is permissible unless the landlord forbids it; charging more needs a different currency or an improvement to the property.
Answered by Mufti Faraz Adam ConditionalTrade & BusinessCan sample products given by companies be traded or used for personal use?
Pharmaceutical samples may be used or sold only if it is legal and the company has transferred ownership to you.
Answered by Mufti Faraz Adam PermissibleTrade & BusinessWhat is the ruling of buffets since the purchased items at the time of transacting are unknown?
Buffets are permissible: prices and dishes are fixed and customary, so any uncertainty is minor.
Answered by Mufti Faraz Adam ConditionalTrade & BusinessHow can I make my wardrobe business Shari’ah compliant?
Selling made-to-measure doors via a manufacturer is valid as a parallel istiṣnāʿ with independent contracts and your own liability.
Answered by Mufti Faraz Adam ImpermissibleTrade & BusinessWhat is the ruling of shill bidding on ebay?
Shill bidding was prohibited by the Prophet ﷺ, breaches eBay's terms, and is sinful.
Answered by Mufti Faraz Adam ImpermissibleTrade & BusinessCan an advance rental payment be retaken by the lessee for his needs?
A lessee cannot reclaim advance rent; it belongs to the lessor unless the lease is mutually cancelled or unusable due to the lessor.
Answered by Mufti Faraz Adam ConditionalTrade & BusinessCan a Director of a Limited Company Draw a Regular Salary Along With Dividends?
A director-shareholder may draw a salary under a separate employment contract that pays regardless of profit or loss, alongside dividends.
Answered by Mufti Faraz Adam PermissibleTrade & BusinessAre Multiple Hire Agreements Valid and Shariah Compliant?
One van may be hired out under several agreements for different periods, and each agreement is binding on both parties.
Answered by Mufti Faraz Adam PermissibleTrade & BusinessIs it Islamically Valid to Trade Items by Displaying Samples Only?
Selling without the buyer seeing the item or a sample is valid if it is described clearly; the buyer may keep an option of inspection.
Answered by Mufti Faraz Adam ImpermissibleTrade & BusinessIs It Permissible to Buy Pre-Loaded Gift Cards with Discount on eBay?
Buying or selling pre-loaded gift cards for a price different to their loaded value is not permissible.
Answered by Mufti Faraz Adam Requires detailTrade & BusinessDoes a Valid Sale Require Price Display?
Shops follow their country's trading standards on price display; in the UK that means the Price Marking Order 2004.
Answered by Mufti Faraz Adam Requires detailTrade & BusinessThe Principles of Profit-Sharing in Islamic Finance
Profits must be shared by ratio of actual profit, never fixed sums or a percentage of capital, and no partner may guarantee another's capital.
Answered by Mufti Faraz AdamJobs & Services
Outsourcing and white-labelling permissible?
Outsourcing client work to a white-label agency is permissible unless the client required the original agency to do it.
Reviewed by Mufti Faraz Adam PermissibleJobs & ServicesIs drop servicing permissible?
Drop servicing is permissible, but the drop servicer stays liable for the service delivered to the customer.
Reviewed by Mufti Faraz Adam ConditionalJobs & ServicesCan I work in the Risk and Compliance department of a conventional bank?
Income from a risk and compliance role is lawful if not directly involved in riba financing, though Shariah-aligned work is encouraged.
Reviewed by Mufti Faraz Adam ConditionalJobs & ServicesWhat is the guidance on content creation on conventional finance?
Writing about mortgages is acceptable if accurate, not promotional, and educational; avoiding riba content is still encouraged.
Reviewed by Mufti Faraz Adam ConditionalJobs & ServicesEarning income from paid surveys
Paid surveys are permissible if legitimate and answered truthfully, but not if they promote prohibited products or services.
Reviewed by Mufti Faraz Adam ImpermissibleJobs & ServicesIs it permissible to deliver student assignments as a service?
Doing a student's homework for pay is not permissible, but paid tutoring to prepare them for it is lawful.
Reviewed by Mufti Faraz Adam PermissibleJobs & ServicesCan I work at the electronic data processing department of a bank?
Working in a bank's data processing department is permissible, as it does not directly assist interest transactions.
Answered by Mufti Faraz Adam PermissibleJobs & ServicesIs it permissible to work in the IT helpdesk department in an investment bank?
IT helpdesk work at an investment bank is permissible as it has no direct link to the bank's interest-based dealings.
Answered by Mufti Faraz Adam ImpermissibleJobs & ServicesIs it permissible for a Muslim to work as a bouncer at a nightclub?
Bouncing in general is permissible, but working as a bouncer at nightclubs and casinos is impermissible.
Answered by Mufti Faraz Adam PermissibleJobs & ServicesIs it permissible to work in a gas/petrol station where they sell alcohol?
The job and income are permissible per Imam Abu Hanifah, though taqwa calls for avoiding handling alcohol where possible.
Answered by Mufti Faraz Adam PermissibleJobs & ServicesCan I work as a security guard for an insurance company? Will my wages be halal?
Security work is a permissible service, so working as a guard for an insurance company is permissible and the wage is halal.
Answered by Mufti Faraz Adam ConditionalJobs & ServicesIs it permissible to write novels and will the money earned from it be halal money?
Writing novels is permissible if based on real events or beneficial in message; income from permissible novels is halal.
Answered by Mufti Faraz Adam ConditionalJobs & ServicesIs it permissible to become a lawyer?
Practising law is permissible if the lawyer avoids defending the guilty as innocent, un-Islamic claims and deceptive means.
Reviewed by Mufti Faraz Adam ImpermissibleJobs & ServicesI used a car park without purchasing a parking ticket. Do I owe them money?
You must pay for the hours you parked without a ticket, e.g. through the pay machine, and repent.
Answered by Mufti Faraz Adam ImpermissibleJobs & ServicesIslamic Employment Law on Delaying the Payment of Wages to Staff
Wages must be paid on the agreed date; delaying them without reason is sinful, and 'khidmah' cannot excuse late or low pay.
Answered by Mufti Faraz Adam PermissibleJobs & ServicesAre the Fees In lieu of Completing a Cremation Form Lawful?
A doctor's fee for completing a cremation form is payment for a lawful service and permissible to accept.
Answered by Mufti Faraz Adam PermissibleJobs & ServicesIs It Permissible To Develop Software For Ticket Management Systems For Different Events?
Developing generic ticket management software is permissible even if it may be used for various events.
Answered by Mufti Faraz Adam ImpermissibleJobs & ServicesWhat is The Ruling on Overbooking a Service?
Double booking or overbooking sessions you cannot deliver to everyone is not permissible; offer cancelled slots to willing students instead.
Answered by Mufti Faraz AdamInvestments
Is Prop Firm Trading Halal?
Prop firm trading is not Shariah compliant and should be avoided; its income is unsound.
Answered by Mufti Faraz Adam ImpermissibleInvestmentsIs margin trading permissible?
Conventional margin trading uses interest-bearing leverage and is not Shariah compliant; trading derivatives on margin is worse.
Reviewed by Mufti Faraz Adam ImpermissibleInvestmentsAre inverse ETFs, stock options and naked options permissible?
Inverse ETFs, stock options and naked options are not permissible investments, even for hedging.
Reviewed by Mufti Faraz Adam ImpermissibleInvestmentsInvesting in Life Insurance Funds
Investing in a life insurance index fund is not permissible.
Reviewed by Mufti Faraz Adam ConditionalInvestmentsTo what extent can a rabbul maal interfere in the affairs of the mudharib?
The capital provider may direct the mudarabah only until the funds are invested; after that he can only offer suggestions.
Answered by Mufti Faraz Adam ImpermissibleInvestmentsIs it permissible to invest in CD’s (Certificate of Deposits)?
Investing in Certificates of Deposit is impermissible because they are interest-bearing.
Answered by Mufti Faraz Adam ImpermissibleInvestmentsIs Bond investment permissible?
Investing in bonds is impermissible because they are interest-bearing loans.
Answered by Mufti Faraz Adam ImpermissibleInvestmentsIs investing with the capital guaranteed permissible?
A capital-guaranteed investment is a loan, so any gain is interest; the scheme is not permissible and excess profit goes to charity.
Answered by Mufti Faraz Adam ImpermissibleInvestmentsIs Online CFD trading permissible?
Trading Contracts For Difference (CFDs) online is not permissible.
Answered by Mufti Faraz Adam ConditionalInvestmentsAre ISAs Shariah compliant?
Conventional cash ISAs pay interest and are impermissible; stocks and shares ISAs must be screened or certified by a Shariah board.
Answered by Mufti Faraz Adam ImpermissibleInvestmentsIs it Permissible to Trade in Binary Options?
Trading binary options is not permissible.
Answered by Mufti Faraz Adam ImpermissibleInvestmentsIs It Permissible To Trade In Preference Shares?
Unlike ordinary shares, investing in preference shares is not permissible per AAOIFI, the Fiqh Academy and most Islamic finance bodies.
Answered by Mufti Faraz Adam Requires detailInvestmentsWhat Is The Difference Between Trading, Investments and Gambling When The Outcome Is Uncertain In All and All Have Risk?
Gambling is a zero-sum stake on an uncertain event with no asset ownership; trading and investment involve owning assets and shared risk.
Answered by Mufti Faraz Adam PermissibleInvestmentsIs it Permissible to Own Shares in My Employer’s Company?
Owning shares in the company you work for, such as through a saveshare scheme, is permissible.
Answered by Mufti Faraz Adam ConditionalInvestmentsIs The Lifetime ISA Shariah Compliant?
A Lifetime ISA is compliant if it earns no interest and holds Shariah-compliant shares; the 25% government bonus is fine to receive.
Answered by Mufti Faraz Adam ImpermissibleInvestmentsIs Retail Forex Trading Shariah Compliant?
Conventional retail forex speculation is not Shariah compliant; Islamic FX accounts must involve actual currency exchange.
Answered by Mufti Faraz AdamSchemes & Products
Is the Local Government Pension Scheme (LGPS) Permissible?
Muslims may stay in the LGPS and receive its pension; the scheme is encouraged to add a Shariah-compliant fund.
Reviewed by Mufti Faraz Adam ConditionalSchemes & ProductsUsing Credit Cards with Discount Offers
Using an Amex card with shop discount offers is permissible if no interest is charged; the discounts may be taken.
Reviewed by Mufti Faraz Adam ImpermissibleSchemes & ProductsIs the Help-to-Save Scheme Shariah compliant?
The government's Help to Save scheme is not Shariah compliant because its bonus structure involves riba.
Reviewed by Mufti Faraz Adam ImpermissibleSchemes & ProductsIs a deposit free mortgage offered by Skipton Building Society permissible?
Skipton's deposit-free mortgage is an interest-bearing loan and is not Shariah compliant.
Reviewed by Mufti Faraz Adam ConditionalSchemes & ProductsWhich Junior ISAs are Shariah compliant?
Invest only in a Junior ISA certified as Shariah compliant with a Shariah board and annual audits; cash Junior ISAs are not compliant.
Reviewed by Mufti Faraz Adam ImpermissibleSchemes & ProductsTaking part in free bets on gambling platforms
Free bets on gambling platforms are not Shariah compliant and must not be used.
Reviewed by Mufti Faraz Adam ConditionalSchemes & ProductsSwitch and Join Rewards in Banks
Switching bonuses and cashback depend on the terms; if a minimum balance or deposit is required, the reward is riba.
Reviewed by Mufti Faraz Adam ImpermissibleSchemes & ProductsIs Invoice Discounting Acceptable?
Conventional invoice discounting is not Shariah compliant, as selling debt at a discount is a form of riba.
Reviewed by Mufti Faraz Adam PermissibleSchemes & ProductsIs my Orange phone contract Shari’ah Compliant?
The phone contract is fine; incentives such as a shopping voucher are gifts from the company and may be used.
Answered by Mufti Faraz Adam ConditionalSchemes & ProductsAre the following interest bearing transactions?
Credit cards are allowed if no interest is incurred, and a car on instalments is allowed if the higher price is fixed at contract.
Answered by Mufti Faraz Adam ImpermissibleSchemes & ProductsWhat is the Islamic perspective on Premium Bonds?
Premium bonds are a loan whose prize draw is a conditional increase over the principal, which is interest, so investing is impermissible.
Answered by Mufti Faraz Adam PermissibleSchemes & ProductsAre bonus Skywards Miles given after using Skywards Credit Card permissible?
It is permissible to receive and use incentives such as bonus Skywards Miles issued by a credit card company.
Answered by Mufti Faraz Adam ConditionalSchemes & ProductsIs it permissible to benefit from the incentives offered for switching to a Reward Current Account with Halifax?
The £125 Halifax switching payment is permissible, but the £5 monthly Reward Current Account payments are interest and impermissible.
Answered by Mufti Faraz Adam ConditionalSchemes & ProductsAre Overdraft Facilities in Bank Accounts Permissible?
An overdraft is a loan: a free one is permissible, but one with fees involves interest and should be cancelled.
Answered by Mufti Faraz Adam PermissibleSchemes & ProductsIs It Permissible To Use The First Direct Current Account Which Requires a Monthly Fee?
A non-interest First Direct current account is permissible; its £10 monthly fee is a service charge, not interest.
Answered by Mufti Faraz Adam PermissibleSchemes & ProductsIs it Permissible To Enter The ‘It’s On Us’ Programme Offered By Lloyds Bank?
Entering Lloyds Bank's free 'It's On Us' prize draw is permissible.
Answered by Mufti Faraz Adam ImpermissibleSchemes & ProductsIs the PayPal Working Capital Cash Advance Shariah compliant?
The PayPal Working Capital cash advance is not Shariah compliant.
Answered by Mufti Faraz Adam ImpermissibleSchemes & ProductsIs the PayPal Credit Service For Purchasing From The Apple Store Shariah Compliant?
The PayPal Credit plan for buying from the Apple online store is not Shariah compliant.
Answered by Mufti Faraz Adam PermissibleSchemes & ProductsAre Cashbacks From Quidco Permissible?
Using Quidco and accepting its cashback is permissible, based on commission (samsarah) and reward fees (juʿālah).
Answered by Mufti Faraz Adam PermissibleSchemes & ProductsIs The Pockit Prepaid Mastercard Shariah Complaint?
The Pockit prepaid Mastercard is permissible to use and its fees are valid service charges; avoid any overdraft facility.
Answered by Mufti Faraz Adam PermissibleSchemes & ProductsIs the Teachers’ Pension CARE Scheme Permissible?
Membership of the Teachers' Pension CARE scheme is permissible.
Answered by Mufti Faraz Adam ImpermissibleSchemes & ProductsIndexation, Inflation and Investing in NS&I Index Linked Certificates
NS&I index-linked savings certificates are not Shariah compliant.
Answered by Mufti Faraz AdamIslamic Finance & Banking
Can interest money be used to fund Islamic charities’ activities?
Interest disposed of directly must go to the poor; only via a Bayt al-Mal-type body can it fund wider Muslim interests.
Reviewed by Mufti Faraz Adam ConditionalIslamic Finance & BankingIs it permissible to open a current account in a conventional bank?
A non-interest-paying conventional current account is not unlawful when needed, though Islamic banks should be preferred.
Reviewed by Mufti Faraz Adam ImpermissibleIslamic Finance & BankingUsing an offset mortgage with equal savings to the loan value
A 100% offset mortgage still involves interest, and even if no interest arose it offsets deposits against the loan, which is riba.
Reviewed by Mufti Faraz Adam Requires detailIslamic Finance & BankingWhat makes a contract Shari’ah compliant?
Lists six fundamental requirements for a contract to be Shariah compliant and valid, starting with consensus of the parties.
Answered by Mufti Faraz Adam PermissibleIslamic Finance & BankingCan interest money be given to a children’s hospital?
Under the accommodating view, interest money may be given to the Children's Hospital Trust; the precautionary view gives it only to the poor.
Answered by Mufti Faraz Adam ImpermissibleIslamic Finance & BankingCan interest money be used to pay parking fines?
Interest money must be returned or given to charity, so it may not be used to pay parking fines.
Answered by Mufti Faraz Adam ConditionalIslamic Finance & BankingHow can rental be adjusted in Diminishing Musharakah products?
Rent in Diminishing Musharakah may be adjusted by a pre-agreed increase, a percentage peg, or renewing shorter leases by consent.
Answered by Mufti Faraz Adam ImpermissibleIslamic Finance & BankingCan I open an interest-bearing bank account to donate the interest in charity?
You may not open an interest-bearing account to donate the interest; use an Islamic or non-interest account instead.
Answered by Mufti Faraz Adam Requires detailIslamic Finance & BankingAre there any Halal and Shariah compliant mortgages in the United Kingdom?
The mufti defers to the Shariah boards of UK Islamic banks, whose approvals one may follow, rather than certifying mortgages himself.
Answered by Mufti Faraz Adam PermissibleIslamic Finance & BankingIs it Permissible to Purchase a House Via Al Rayan Bank?
Al Rayan's Home Purchase Plans are approved by its reputable Shariah board, so one may follow that approval and use them.
Answered by Mufti Faraz AdamDebt & Loans
The sequence of settling debts of various debtors
A debtor may repay creditors in any order, though pressing need or proportional repayment is preferable; honour deadlines.
Reviewed by Mufti Faraz Adam ConditionalDebt & LoansLiquidating Collateral to Settle an Outstanding Debt
A creditor may sell pledged collateral only with the debtor's authorisation and must return any surplus above the debt.
Reviewed by Mufti Faraz Adam ImpermissibleDebt & LoansIs it permissible to repay a loan in a foreign currency?
A loan repaid in another currency is a currency exchange, so it must be at the market rate; paying 15,000 rupees instead of 14,945 is not allowed.
Answered by Mufti Faraz Adam Requires detailDebt & LoansI am having difficulty paying for a car I purchased on credit. What are my options?
A purchase cannot be cancelled unilaterally; ask the seller for mutual cancellation or a grace period, possibly offering security.
Answered by Mufti Faraz Adam ImpermissibleDebt & LoansIs invoice discounting permissible?
Invoice discounting is interest-based borrowing and not permissible; interest-free loans or profit-sharing finance are suggested.
Answered by Mufti Faraz Adam PermissibleDebt & LoansCan a Lender Demand A Loan Repayment Prior to Maturity?
In the Hanafi school a loan stays payable on demand, so the lender may ask for repayment early; AAOIFI standards differ.
Answered by Mufti Faraz Adam ConditionalDebt & LoansIs it Permissible To Opt For A Credit Card With Lower Interest Rates to Pay Off A Credit Card With Higher Interest Rates?
Seek an interest-free loan or 0% APR first; only as a last resort may one switch to a lower-interest card, while repenting.
Answered by Mufti Faraz Adam Requires detailDebt & LoansWhat should be done with surplus proceeds upon the sale of a collaterised asset?
Any surplus from selling a collateral asset beyond the outstanding debt must be returned to the debtor.
Answered by Mufti Faraz AdamInsurance
Is it permissible for me to seek compensation and be paid from an insurance company?
You may claim compensation for actual damage and medical costs, not more; extra paid voluntarily by the insurer may be accepted.
Answered by Mufti Faraz Adam ConditionalInsuranceIs It Permissible To Reclaim PPI (Payment Protection Insurance)?
Reclaiming mis-sold PPI is permissible up to the amount you paid the insurer in premiums.
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