I would like to know if the following investments are shariah compliant or not

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Ref no: 0022#

Date: Tuesday, 15th March, 2011

Category

Money Matters

Title

I would like to know if the following investments are shariah compliant or not

Question

Assalaamu Alaikum,

 

Dear Mufti Saheb,

 

I would like to know if the following investments are shariah compliant or not:

 

– Oasis Crescent Equity Fund – Unit Trust

– Stanlib Shariah Equity Fund – Unit Trust

– Old Mutual Albaraka Equity Fund – Unit Trust

– Albaraka Bank – Monthly Investment Plan account(or any other investment account with Albaraka)

– Albaraka Bank Shares (buying shares in the bank itself)

– ABSA Islamic Banking – All savings/investment accounts

– Roshgold Investment Holdings Shares (buying shares in the company)

 

If none of the abovementioned investments are shariah compliant or if you do not have information on them, then:

1) Who can I contact to get more information?

2) In your opinion, which investments in South Africa are shariah compliant for us to invest in?

 

Answer

Muhtaram/Muhtaramah

In the Name of Allāh, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāh wa-barakātuh.

1. The Darul Iftaa does not approve any of the products or companies listed in your email.

2. We have not come across any investment product in South Africa that is Shariah compliant. We are of the view that Muslims should form syndicates and invest their monies in this way. The services of a reputable management company should control the finances of the syndicate to maintain accountability and transparency. The investment opportunities should cater for the small, medium and large income sectors of the community.

3. The Darul Iftaa is willing to assist with regards to the Shariah aspects in trying to set up this opportunity.

 

 

And Allah knows best
Darul Iftaa

Madrasah Inaa’miyya

 

 

· The Sharée ruling herein given is specifically based on the question posed and should be read in conjunction with the question.

· The Darul Ifta bears no responsibility to any party who may or may not act on this answer. The Darul Ifta being hereby exempted from loss or damage howsoever caused.

· This answer may not be used as evidence in any Court of Law without prior written consent of the Darul Ifta.