On this site you can:

  • Get basic information on Islamic investment, Islamic banking, Islamic finance, and Islamic insurance options are available.
  • Understand what the basic finance and investment terminology in today's marketplace.
  • Be able to identify what financial services and investments are allowed or prohibited under Islamic principles.
  • Share their experience on Islamic investment, Islamic banking, Islamic finance, and Islamic insurance with fellow Muslims around the world, by participating in the forums, and commenting on articles, news, and other sections of the site.
  • Share any news or conferences or courses related to Islamic investment, Islamic banking, Islamic finance, and Islamic insurance that would be interesting for Muslims.
  • Find business partners or venture capital to invest in your project.
  • Get advice and give advice and views with other Muslim visitors of this site.

We also welcome authors to write articles about Islamic investment, Islamic banking, Islamic finance, and Islamic insurance.

If you have a site related to Islamic finance, and want us to syndicate its feed via RSS, please let us know.

Our Mission is to provide Muslims world wide with useful and practical information about Islamic investment, Islamic banking, Islamic finance, and Islamic insurance consistent with their beliefs and values.Our vision is to help Muslims help themselves, help each other and help others by growing their wealth, and serving their financial needs in an Islamically Correct® way.

Purification by Charity

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.

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Pitfalls to avoid

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.

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Internet Based Global Islamic Institutions

The internet has, and will continue to, revolutionize many aspects of oursociety, business and life. One area that the internet has excelled in is financial information and services.Think about it for a while:

  • Information on stocks, quotes, corporate news, mutual funds, graphs, and more are now freely available, and in amazingly high quality on thousands of web sites!! Muslims can (and do) make use of the above information, but it is not customized to the needs of, nor targeted to, Muslims.
  • Tens of brokers have opened shop on the web to a global audience (E*Trade, Datek, ...etc.), and many Muslims use them to buy and sell stocks. However, many give interest on cash balances.
  • Hundreds of institutions have internet banking (many of them offer their products for worldwide customers such as Security First Network Bank, NetBank, ...etc.), and many Muslims use them. However the question of interest and alternative modes of financing is not addressed.
  • Hundreds of lenders offer house loans (mortgage) to the public, including Muslims, but none offer products and services that cater for their needs.

I guess I could give more examples for other areas, such as insurance,business financing, venture capital, leasing, and more, but you getthe general picture.Now, it is time for credible Muslim financiers to get their act togetherand offer equivalent products and services to the 1.2 billion Muslimsworldwide using the internet as the global distribution channel.

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Islamic Filter

As you can see, there are several steps that a Muslim Investor must dobefore he can invest in a certain stock.These steps include:

  • Nature of business
  • Percentage of income from interest
  • Financial soundness

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Selecting a Broker

In today's internet enabled market, there is no reason to go for the so calledBig Name "Full Service Brokers". These have been labelled as "Full Price Brokers" and justifiably so, since they tout their "research" and "advice" and make those services justify the high fees and commissions they charge per trade.

These big names include Paine Webber, Merrill Lynch, Charles Schwab, Prudential, Salomon Smith Barney and many more.

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Stocks - Direct Investment

So, Muslims are against interest and this leaves a bank Savings Account out of the question as a vehicle for regularly saving a small monthly amount. This is also the "conventional" way to teach kids the basics of investment, and give them a motive to save rather than spend, and watch the money grow because of bank interest.On the other hand, not everyone can afford the 2,000$ required to start a brokerage account, and the 10-20$ a trade fee is too high if I only want to save 50-100$ per month? Is there a way?Yes there sure is a way!

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Insurance

Commercial Insurance has been deemed unacceptable under IslamicSharia law by many scholars. This includes property insurance (house,car), life insurance, and health insurance.However, many scholars have allowed car and home insurance wheneverthere is no Islamically accepted alternative available, and more sowhen the local law requires one to be insured.Here are some Fatwas on the ruling on Insurance under Islamic Law:

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Mortgage for a Home

Question:: I am a simple muslim residing in the UK. Alhamdo-lellah until now I did the best of my try to earn halal and avoid interest. Now I feel I should buy a house of my own (my children being growing). There is a prelimenary Islamic modaraba and ijara home purchase introduced by a bank in UK.Unfortunately some of its conditions are difficult to meet by an average earner like me e.g a condition of 20% down payment is a prerequisite, it is difficult to provide that much money. So I cannot avail it. I can afford the conventional mortgage. I realy feel 'krahiyat' for it, but I do not know what to do. Is the conventional mortgage allowed in Islam in any way? or I have to live in a rented house for life.

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Working for a Bank

Question:: I am currently working for a bank and have been told many conflicting stories about this act being allowed or prohibited in Islam and am really confused over the issue as this job is also the my main source of income?Answer: Answered by Sheikh Yusuf Talal DeLorenzoThe same question was asked of Shaykh Muhammad al Ghazali, may Allah bless his soul, in my presence over twenty years ago. The answer he gave was the answer given by his teacher, Shaykh Hasan al Banna, to someone who had asked the same question.

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Mortgage on Investment properties

Question:: I own 3 properties on interest based mortgage. I receive rental income from 2 properties and live in one. There are surpluses on rental income after paying monthly interest and other expenses. However, I use the surplus to repay my personal loan. ( Allah willing, I am seeking an Islamic solution to my financial affairs)Please comment on my situation and advise me if I could borrow further(interest bearing) to help the Muslims in Chechnya.

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Day Trading in Stocks vs. Investment

Question::I have a question regarding buying stocks for couple of months and then sell it. Is that considered to be day trading and prohibited or (not)!Thanks.Answer: Answered by Sheikh Yusuf Talal DeLorenzoIn answer to your question, it may be necessary to first explain the stance on day-trading I believe to be the one most consistent with the teachings of the Shariah.To begin with, equity investing offers Muslims the opportunity to profit, not by lending at a guaranteed rate of return, but by sharing in ownership, and thus commiting to share in the risks associated with ownership.

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Employee Stock Option Plans

Question:: Can you suggest any other literature regarding the propriety of granting stock options in a company to Muslim employees? Are Muslims able to participate in employee stock option plans? If not, what other options are available in lieu of partcipating in employee stock option plans? Answer: Answered by Sheikh Yusuf Talal DeLorenzoThank you for your question. This is one which many Muslims puzzle over, and with good reason.

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Libas Muslim Fashion designs

Women now longer have to choose culture over couture. They can now be fashionable while maintaining their culture. The object of Libas Designs is to provide Fashion with Western Style and Eastern Flare. Libas Designs has received critical acclaim for providing beauty and elegance with modesty. Our designs demonstrate that covering our bodies can be quite stylish. By intertwining today's fashions with yesterday's modesty we can bring pride and confidence to all women. The simplistic yet captivating design has created a whole new trend in fashion. 

Muslim Women Magazine

Looking for someone to donate money to help me publish a non-profit Muslim Women Magazine in USA, Southern California.

There are currently 6 million Muslim in America, and a good portion of them are women. However, there is currently no magazine for muslim women.

All muslim women have to read are magazine not suitable for the religious. I am starting this magazine on my own with only a few volunteers. Therefore, my sole source of funding to help with with the much needed, and great cause is through donations and Advertising.

Islamic Insurance Company in Illinois, USA.

Our insurance company is raising $2 million in capital to begin marketing automobile and homeowners insurance in the state of Illinois.

The company will operate in accordance with Shari'ah.

The company is being founded by Salah Hassan and Al-Van Nevel, both have proven strong experience in insurance industry.

The company will be based on direct marketing without the involvement of agents and will utilize the internet to reach its customers.

Industrial Facility in Alexandria, Egypt

This is an industrial production facility in Borg El Arab industrial zone west of Alexandria, Egypt.

The facility is suitable for many industrial and production uses, such as clothing, food, assembly, ...etc.

Seeking partnership on a joint venture basis, or medium to long term rental of the facility.

The facility enjoys tax-free status under the Egyptian law for 10 years. Close to the commercial sea ports of Alexandria and Dekheila, as well as Alexandria's International Airpot at Nozha, and the soon to open Borg El Arab International Airport.

Fitness Center in Washington, D.C. Area for Muslims

The Muslims in the D.C. Metro area are in need of a fitness centre, where the men and women can work out in seperate areas and in an islamic environment. I would like to know how I can go about getting financial assistance to make this dream of ours possible. I am presently working on a business plan for this centre and I encourage anyone who is interested in this venture to please contact me.

Islamic Investment Wanted For A Muslim-Owned ISP

MuntadaNet, Inc is a full feature Internet Service Provider. Our aim is to be the largest Muslim ISP in the world. We also want to make sure that only do we achieve that goal, but we achieve it Islamically. MuntadaNet has not taken any loans to accomplish its goals. MuntadaNet is looking for venture capital to expand its operation, increase services, and enlargen its technological footprint in the Muslim community.

Web Community and Web Marketing

Contact:Mohamed Ali ELLOUMI Tel : +216 (1) 79 99 11 Fax : +216 (1) 84 07 18 Web Site: http://www.IMaghreb.com Overview:Acces to E-Business is the first Tunisian webmarketing agency specialized in the Internet submission to search engines. Several web development companies already know us. This is thanks to our marketing and commercial effort achieved both in Tunisia and in France. We work on "The Arab Maghreb Directory" (www.imaghreb.com) which is available on 4-1-2000. Our objective is to create a Maghreb virtual community and develop more partnership opportunities in this sub region. This directory will provide several informations such as weather, Sports, TV programs, Cinema, ...etc. to create customer loyalty and cover needs of such informations for Maghreb and other internet users who are interested to know more.

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