What Are Halal Investing Rules?

What are Halal investing rules? What makes an investment Halal? Is investing in shares Halal? Is forex trading Halal? What are the options available to me as a Muslim who cares about the Halalness of his or her money? How can religious Muslims invest their money without worrying about interest rates or any other issue which is forbidden in Islam?

There are tons of factors Muslims need to think about while investing their money in a Halal manner. In practical terms, these are difficult questions to answer as modern-day investing has become complicated.

You need to confront quite a few challenges apart from knowing the basics of what the Halal investing rules are. Let us discuss these challenges one by one to get a sense of how Muslim investors can make their investment decisions in modern-day economies without jeopardizing their religious teachings.

Challenges For Halal Investors

Definition

There are plenty of reasons to do so. Making a profit is perhaps one of the strongest ones. And, there are so many ways to invest your money to increase your wealth. However, Muslims are required to follow certain Halal investing rules which are ethical.

To understand the rationale behind the Halal investing rules Shariah has prescribed for us, we need to know why people generally invest.

Why Do People Invest?

The most important motive people have behind investing their money is accumulating wealth. By so doing they aim to outpace inflation and increase the real value of their money.

Generally speaking, people invest their money to achieve all or any one of the following objectives.

Grow their wealth
Save for retirement or other purposes
Reach financial goals
Start a business
Reduce taxable income
Earn without hard work
Enjoy tax benefits without breaking any laws