Is It Permissible to Invest in a Stock That Meets the Criteria of Platforms Such as Musaffa and Islamicly?

Answered by Shaykh Muhammad Carr

Question 

I want to invest exclusively in Sharia-compliant stocks and use platforms such as Musaffa and Islamicly to screen for interest-bearing debt, assets, and impermissible income. If a stock meets these criteria, is it permissible to invest in it?

ِAnswer

In the Name of Allah, the Most Merciful and Compassionate.

Thank you for your question.

“Allah wants ease for you and does not want unbearable hardship for you.” [Quran, 2:185] He also says, “So fear Allah all you can, and hear, and obey and expend: It were better for your very own selves.” [Quran, 64:16]

Its Sharia Board has completely endorsed Islamicly, and you may therefore invest.

Amana Advisors has endorsed Musaffa investment screening. However, the participant is responsible for ascertaining whether the endorsed Sharia-compliant investment methodology is implemented correctly.

Musaffa Endorsement

Dr Aznan Hasan and Mufti Faraz Adam have endorsed the investment and screening methodology adopted by the Musaffa team. However, the proper implementation in accordance with what has been reviewed and discussed is the sole responsibility of the Musaffa team.

Suppose the Musaffa team implements the endorsed methodology with integrity (and there are no ostensible reasons for us to believe otherwise). In that case, the investments will be considered Sharia-compliant, given the current global Islamic Finance industry practice.

The Musaffa Sharia Certificate states, “Although this certificate endorses the documentation and processes, proper implementation in accordance with what has been reviewed and discussed is the sole responsibility of the end-user. Participants must perform their own due diligence before investing. This certificate is not financial advice, and Amanah Advisors does not bear any liability or responsibility for any adverse outcome.”

Islamicly Sharia Compliance

Islamicly Sharia Compliance Certificate fully endorses its methodology and implementation. It reads,

“In the Name of Allah. The Most Beneficent, The Most Merciful.

This is to certify that ISLAMICLY APP is Sharia compliant and is a credible, well-researched source of Sharia compliant stocks globally.

We hereby certify that the Sharia compliant stocks information displayed on the ISLAMICLY APP is in accordance with the Sharia screening criteria approved by the below Sharia Scholars Board:

Dr Muhammad Ali El-Gari, Saudi Arabia

Dr Muhammad Amin Ali Qattan, Kuwait

Dr Nazih Hammad, Canada.” [islamicly.com]

I pray this is of benefit and Allah guides us all.

[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door for students. As an imam, he has the unique opportunity to serve his community in daily life.

In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari’ah Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.