Share ownership in a regular bank that does deal with interest

Investment Questions and Chats General Investment
#1

Al Salam Alaikum,

Ramadan Mubarak. @Mufti_Faraz_Adam @Mufti_Billal @Mohsin_from_IFG @ibrahimkhan

I have shares that were gifted to me, in the ‘Arab Bank’ non muslim and does deal with interest rates.
I need to urgently know if it is haraam and if I should sell the shares,because I need to give Zakat during this month and I’m not sure if the profits received from the shares or the actual shares are in fact halal.

www.Arabbank.com
Kindly advise.
Jazak Allah Khayr

#2

Wa alaykum salaam,

If the bank does not have a Shariah board and is not Shariah compliant, then such shares would be impermissible and should be sold, with the proceeds going to charity.

1 Like
#3

Salam, @Mufti_Faraz_Adam @Mufti_Billal @ibrahimkhan @Mohsin_from_IFG

JazakAllah Khayr Mufti Faraz.

Please find attached your response for the other question I had about the profits I receive from these shares, which do have 1.5% interest as they are placed in another non sharia complain bank.

You mentioned that " I cannot give Zakat from the profits received from these shares"

2021-05-03_14-08-06
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All in all can you please let me know what I should do and if I should calculate:

  • shares sold at market price ’ رؤوس الأموال’ as part of all zakat with the halal money I have
  • If the profits generated over 5 years should be given away as part of my total zakat ( added to the halal money I have )
    -If I should deduct the interest of 1.5% per annum for the period of 5 years , from the overall profits generated?

Please let me know if the above is permissible. As I’m confused on what is to be given for Zakat ( added to me halal income) and what is not to be given as part of the overall zakat.

-when you mentioned that the proceeds go to ‘Charity’ can you kindly clarify if you meant the ‘profits from the shares’ or ‘profits from the shares with the interest’ or the ‘sale of the actual shares’ at market price?

-Can you also let me know what type of charity .

  • Can you please let me know if any is permissible to be kept for personal use.

it’s a tangled matter for me as I have inherited these shares, and the profits were placed in a non sharia complaint bank by a sponsor. and I need to figure it all out soon as I need to give zakat in Ramadan.

Thank you for your help, I really appreciate it.
Jazak Allah Khayr

#4

@Mufti_Faraz_Adam @ibrahimkhan @Mohsin_from_IFG

Please I need help with this. We’re approaching the end of Ramadan as my Zakat is due and the amount I have with my shares is big so I need clear direction on what should be done.