Fatwa: # 43358
Category: Business Matters
Date: 5th November 2019


Investing in Al Rayan GCC Fund (Qatar)


As Salaam Alaikum,

I need your advice regarding the permissibility of investing in al rayyan GCC fund. I am putting the link of that fund, Please guide me. 



In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

It is permissible to invest in shares under the following conditions: [i]

  1. The main business of the company is not in violation of Shari’ah. Therefore, it is not permissible to acquire the shares of the companies providing financial services on interest, like conventional banks, insurance companies, or the companies involved in some other business not approved by the Shari’ah, such as companies manufacturing, selling or offering liquors, pork, haram meat, or involved in gambling, night club activities, pornography, etc.
  1. If the main business of the companies is halal, like automobiles, textile, etc. but they deposit their surplus amounts in an interest-bearing account or borrow money on interest, the shareholder must express his disapproval against such dealings, preferably by raising his voice against such activities in the annual general meeting of the company.
  1. If some income from interest-bearing accounts is included in the income of the company, the proportion of such income should be given in charity and must not be retained by him. For example, if 4% of the total income of a company is accrued from interest-bearing deposits, then 4% of the dividend should be given in charity.
  1. The shares of a company can be purchased only if the company owns some non-liquid assets. If all the assets of a company are in liquid form, i.e., in the form of money, then that cannot be purchased or sold, except on par value, because in this case the share represents money only and the money cannot be traded in except at par value.

It is cited in the Al-Rayan GCC fund’s prospectus that:

“The Fund shall not invest in companies which derive more than 5% of their income (cumulatively) from:

  1. Alcohol
  2. Tobacco
  3. Pork related products
  4. Financial Services
  5. Gambling
  6. Music
  7. Hotels
  8. Cinema
  9. Adult Entertainment

10. Defense and/or weapons.”

This means that the Al-Rayan GCC Fund can invest in companies that derive 5% or less of their income from activities that are in violation of Shari’ah.

It is not permissible to invest in companies that derive any percentage of income from activities that are in violation of Shari’ah.

Accordingly, it is not permissible to invest in the Al-Rayan GCC Fund.

And Allah Ta’āla Knows Best

Muhammed Shafi

Student - Darul Iftaa

London, U.K. 

Checked and Approved by,

Mufti Ebrahim Desai.


[i] An Introduction to Islamic Finance – Maktaba Ma’ariful Quran Pg: 207

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