Interest bearing investments

· 1 Dhuʻl-Hijjah 1436 AH1 min readEnglish

Question

On one of your responses on this site, you have mentioned that if a person has come into possession of interest he should distribute it to poor and needy people. If a business is forced (the business has to comply as it is a requirement of the non-muslim government and will not be allowed to operate should it refuse to do so - the interest is earned by keeping cash as securities in a fixed account) to conclude an investment that will generate a substantial interest return, such that the entity decides to employ a full time dedicated employee in order to ensure that the interest money is disbursed properly to various poor and needy organisations, is it permissible to remunerate the said employee from the interest funds bearing in mind that the employee is a Muslim and not zakaatable? Does the money become halaal for that person?

Answer

We suggest that you do not go for such an investment.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

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