Reading Al-Fatihah at the time of the engagement is not considered something bad or discouraged in religion. Rather, it is a good deed, especially when it is done with the intention of invoking the blessing of Allah. Thus, reading Al-Fatihah in such a case is an act which denotes blessing the engagement.
Sheikh Ahmad Kutty, a Senior Lecturer and Islamic Scholar at the Islamic Institute of Toronto, Ontario, Canada, states the following: “There is no fixed ritual of reading Al-Fatihah during an engagement ceremony, for reading Al-Fatihah is not all considered as one of the integrals or conditions of engagement proper. We are not allowed to prescribe anything as a set ritual in religion without the sanction of the Law-Giver (i.e., Allah and the Messenger).
Having said this, however, I must add that reading Al-Fatihah on such occasions is not considered bad; rather it should be considered a great deed if done with the intention of invoking the blessing of Allah. Since Al-Fatihah is the opening surah of the Qur’an, and has been referred to by various names such as “Thanksgiving”, “Prayer”, “Healing”, et cetera, its reading entails great rewards and blessings. So if we wish to read it to invoke blessings upon the couple at the time of engagement, it is indeed beneficial; no one should object to such a practice. How can anyone object to seeking the blessings of Allah through His revealed Word, while it has been considered as the du`aa’ par excellence?
Thus, reading Al-Fatihah and exchanging rings, gifts, et cetera on the occasion of the engagement are all considered permissible and good practices, and therefore no one should object to such practices.