Muslims who wish to invest should seek those businesses that do not deal in haram products or practices. This is actually necessary so as to avoid investing in the shares of companies that deal with haram products.
Sheikh Ahmad Kutty, a senior lecturer and Islamic scholar at the Islamic Institute of Toronto, Ontario, Canada, states: “Investing in company shares that deal with haram products (whether pork, alcohol, and so on) is not permitted in Islam. It is an established rule in Islam that if something is declared haram in Islam, then a Muslim is required to abstain, not only from involving himself in it, but also from promoting it. By buying shares in such companies, one is committing the offence of promoting what is considered haram. Therefore, no Muslim should even contemplate doing such a thing.
It is, therefore, imperative for Muslims who wish to invest to look specifically for those businesses that do not deal in haram products or practices. Buying shares in companies that deal solely in high-tech products, dairy products, and so on, might fall under this category. Sometimes, an individual Muslim may find it hard to keep track of the policies and business practices of such companies so as to ensure that they are entirely free of involvement in haram. If that is the case, then a person is best advised to entrust this decision to those agencies which specialize in monitoring companies for their halal practices.
It is fortunate that there are no shortages of halal investment opportunities that are strictly based on clear principles of halal and haram. It is recommended to get in touch with them.”