Basics

Following is an analysis of the 30 companies forming the Dow Jones IndustrialAverage (DJIA), form the Muslim point of view.

The following is an analysis of the Industries classificationfor the USA. Certain industries are clearly prohibited from theIslamic point of view. Others are questionable.

The following set of business activities are considered prohibitedin Islam, and thus investing in these kind of businesses is notsomething a Muslim should undertake.

Although Islamic Banking, Finance and Investment has been rising steadilyin the second half of the twentieth century, there has been some setbacksand pitfalls, that every Muslim should be aware of.

Whether you are an individual looking to invest in an Islamically-Correct®way or an enterpreneur willing to provide Muslims with an investment opportunity, you have to watch for several things.

The morale of the discussion below is "let the buyer beware!". If you lookaround, you will find respectful institutions that offer competitive good services. Just watch out for the few "bad apples".

Since most bank accounts, Mutual Funds, and other financial instrumentsoperate under non-Islamic Financial systems, they have some income frominterest despite the invetor (or the fund managers) being keen on notto get any interest.

The reason for interest creeping all over the place is that financialinstitutions will give interest on cash balances, often mandated bylocal law. A Mutual Fund will keep up to 15% of holdings in the formof cash, so as to respond to people requesting liquidation of theirshare in the fund.

As a Muslim, there are many responsibilites the one should undertake in thislife. One of these responsibilities is management of wealth.

The question on why riba is prohibited is often raised by some who wonder how something that is now so prevalent in the world's economy can be prohibited.

For some, the answer to your question can be as simple as "because God said so in the Quran", but for others, an analysis of why it is prohibited needs to be done.