Who came up with the “purification” idea? Like, if I invested in a company which deals with a small portion of interest, then why should I purify it? Why are we dealing and encouraging interest in the first place?
Consequently, I can do gambling, stealing, lie and cheat in business dealings, earn money in any other haram way and then purify them. It is like, do a sin and then, re-compensate that with a good deed.
Do you think that giving money to charity (purifying the haram money) would decrease the effects that the interest has caused in our daily life/world? No, right? Interest causes many problems and I should be assuming that you know most of them (because you have degrees and are very educated).
Please don’t take my question in a negative way. I know that I am not a mufti that I should be arguing with you. I just want an answer in order to increase my knowledge and understanding.
Jazak Allah khair! May Allah reward you all the highest level of paradise!
May Allah bless you. You are welcome to ask any questions which you may have.
What is meant by purification is getting rid of the entire haram money mixed with your halal money. Islam does not recognise the ownership of haram money by a Muslim. Hence he/she cannot benefit from it.
It does not mean that if you are earning £100 of haram money, then by giving £10 out of it, the remaining £90 will become halal. Any money you earned through haram means, must be given away.
Purification means removing that £100 of haram money from let’s say £500 of your halal money.
Secondly, investing in haram is not permissible. When it comes to buying stock, contemporary scholars realised that the way the market is structured, most of the companies are somewhat involved in haram dealings. Sometimes it is not because they have a choice, but because of regulations for example. Until we have a financial system that are free from any sort of haram dealings, the scholars allowed Muslims investors to invest their money into certain companies provided some conditions are fulfilled. One of the condition is to get rid (purify) of any haram money a Muslim shareholder is earning.
Again I cannot stress enough that, what we mean by “purification” does not mean donating a portion of haram money to purify the remaining. It means donating the FULL haram money earned through haram means. So if you gamble, steal and cheat, not a single penny of the money earned will be halal. Whether you donate part of it, wash it wit Zam Zam etc, the result is still the same.
Thirdly, this does not mean we are encouraging interest transaction to take place. We are on a journey to bring more people like you towards a more ethical way of finance. Yet, we must be realistic and consistent. We can only achieve this, by starting from somewhere and make our way up. Maybe we will not be alive to see the full impact. But inshaAllah we would have paved the way for future generation.
So, for example, let’s say that I will steal someone’s money and donate that (total) money to charity. I don’t need that money. I want him to suffer losses and hardships (assuming that the police won’t catch me). The reason behind this act is because you have permitted us to use that money to donate it to charity.
Another example, I’ll do gambling and donate that money to charity. I will have the confidence and pleasure that I am helping the Muslim ummah (because of giving a large amount of charity), when in fact, I am not. I am actually destroying the Muslim ummah with the negative effects caused by these acts, such as gambling, interest/riba, stealing, etc.
Jazak Allah khair for this answer.
I think I disagree with you regarding your saying that
Firstly, because you would not finish or compensate for the negative effects that the interest/riba has caused. I mean why would Allah make it haram when it would have more advantages than disadvantages? So, of course, Allah made it haram because it has more disadvantages than advantages. The charity would not completely finish the negative effects that the interest/riba has caused. You still are encouraging the interest to take place.
Allah also said to not follow the “footsteps” of satan. He specifically said “footsteps”! Like, we should not do the first act which will eventually lead us to the haram or the major sin. For example, we should not talk to our female colleagues as much as we do with our male colleagues , because it may end up in the haram act or something close to it. I am not saying that you should not to talk to your female colleagues, but try to not crack some joke and not to talk any subject which might bring you out of the (haram) line. Similarly, we should stop interest in the first place so that, we may not develop a habit that would pull us or convince us so much that we would think and believe that interest in just a normal thing or interest is just like trade (as mentioned in Quran I think).
Also, I think you mean that our world is filled with interest. In other words, we cannot “completely” earn halal, since many sectors and companies (almost all of them) somehow deal with interest. My argument for this is that if the world is filled with zina acts, I think some muftis would come up with the fatwa that you can do zina with a girl for some time or a fatwa that you can date her. I should be thinking this as zina is completely and clearly prohibited in the Quran. Consequently, interest/riba I prohibited in the Quran, but the muftis are trying to make fatwas like the fatwas I have mentioned above (regarding the zina).
I can provide some solutions. Like, promote our youngsters or the Muslim ummah to invest in the startups which are 100% halal, like literally. I think this is what IFG.VC is doing, but still, they apply the ratios, like the 33% or 30% ratio of debt-to-equity ratio and all other related ratios, still, they ARE promoting the haram elements (like interest)
to circulate in our community.
Please don’t take my question in a negative way. I know that I am not a mufti that I should not be arguing with you. I just want an answer in order to increase my knowledge and understanding.
Jazak Allah khair! May Allah reward you all the highest level of paradise!
Donating to charity is only when the interest is earned through investment such as shares or savings account. As I mentioned before, the money is not owned by you therefore you cannot use it for your own benefit. In reality it has to be returned to the owner in all situations you have mentioned i.e. robbery gambling etc. For example, in the past in Reunion Island. I was told that some banks, after paying the interest, they would deduct the interest from your account if you have given them authorisation to do so. Many Muslims would arrange with their bank managers to do that. Some banks managers would arrange for the interest to not be paid at all if you had that agreement with them. However, now it is impossible for your bank to deduct the interest from your account. To solve the solution of getting rid of the interest, the best solution scholars came up with was to donate that money. This is not a new rule but it is derived from a classical ruling established by scholars of the past.
You said the following:
That is a valid point, but unfortunately, for now the majority of scholars involved in establishing an interest free financial system, follow this same ruling. I cannot personally disagree with them as I believe they understand the situation better, and have more wisdom than I do.
Your statement on zina is problematic for different reasons. First you are conflating zina and riba. Hence, I would like to refer you to read Al Ashbah Wa Nazair (The similitude ) of Ibn Nujaim and Al Furuq (The differences) of Qarafi. They address the issue of how to reach to different rulings when matters seem similar.
Secondly, your statement on “Muftis making potentially zina halal” is not a valid response. You seem to back this statement up with the idea that Muftis have made riba halal? You must demonstrate where and which Mufti has made riba/interest Halal.
Your statement that we cannot “completely” earn halal is also false. Not only it is false, but it is an accusation on people who are earning a halal living. However, if you believe that we are all somewhat earning a haram income, then it is for you to demonstrate it. I will be happy to read your analysis on this topic backed up with facts and statistics.
When doing screening of companies, IFG applies certain ratios agreed upon by scholars from around the world. Those scholars are well versed in the science of economic, finance and fiqh. We trust their judgements and are happy to promote their rulings on this matter. We believe this is the way forward and we will continue to support their ideas inshaAllah.
IFG does not promote haram element. If we are, then please post the details on the forum for us to look at.
I think one of the conditions of your fatwa is the following:
So, let’s say for example, that I have got many opportunities of investment whether it be investing in start-ups (which generally, don’t include interest nor debts) or whether it be investing in Sukuk (which also does not include interest) or whether it be investing in real estate or any asset related. So, can I have the intention (of doing good deeds) that I am not investing in the stock market (in which most shariah-compliant companies needs some purification of dividends and an intention for me that I am not encouraging interest in the first place) and investing in other alternative sources/assets? Will Allah reward me for this act/intention (niyyah)?
By the way, i know that you have permitted investing in the stock market and then purifying, if needed. But my question is that, is it better for me to stay away from it when i have some other investment opportunities, right?
Note: My question does not go against your fatwa. I am just extending our further thoughts and asking more question. I think my question includes your condition (as mentioned above/top of question).
Jazak Allah khair! May Allah reward us all the highest level of paradise!
The question related to intention is more within the remit of 'ibadat and not mu’amalat as such. Please send the query to the relevant Ifta department.
What is better to do when you are facing with 2 shariah compliant investment opportunities, will depends on many personal factors. For example, which one will give you a better return? Hence I cannot advice on this.