The company was founded in 1873 and its activities of processing natural resources are considered to be Shariah-compliant. Live below your means, focus on legacy building, diversify charity investments, and prioritize the prophetic way in your financial decisions to achieve financial stability and make a positive impact in society. At the beginning of the book they argue that Muslims are five times poorer than the rest of the world and this needs to be urgently addressed if we want to progress as an Ummah. Sukuk is an instrument where the institution issues the certificate to the investors that represent undivided ownership or investment in the assets using shariah principles.

In general, it must be asset-based and should not include riba’, gharar, and non-permissible products and activities. In terms of investment, gold is considered a safe and traditional means of investment that is Sharia compliant. Whether you’re a seasoned investor wanting to diversify your halal portfolio or a novice just stepping into the arena of ethical investing, this article is your compass to financial prosperity—without compromising your beliefs.How you choose to speculate on the direction of the US dollar is the defining factor of whether forex trading is halal or haram. However, if you want to make a quick flip and it does crash, you’ll be left exposed with your money tied into an asset that will make you a loss unless you hold onto it until things get better. Contrary to the secular finance system, which sole aim is to make money, Islamic finance principles place great emphasis on socioeconomic justice, ethics and partnerships that are mutually beneficial. Some Islamic scholars recommend treating cryptocurrencies like commodities, wherein trading should be conducted in a manner that adheres to Islamic principles like immediate transaction settlement and the avoidance of speculation. Halal investing is, without a doubt, a very reliable and ethical way for a person to grow their money.

This guide is your gateway to understanding Islamic finance, investments, assets, and the value of making informed investment decisions.

As the Islamic finance sector continues to grow annually, a faith-based approach to investing and trading is becoming more mainstream. Though halal investment guidelines serve as a guide for Muslims to ensure their investment activities adhere to the Islamic finance principles, it does not mean the investment options are only restricted to Muslims. However, it is difficult to scale up such an investment as you then need to think about storage costs, safety and insurance. First and foremost, the cryptocurrency should not be involved in haram activities, such as illegal trade or supporting non-Shariah compliant ventures.