You are probably interested in halal investment ideas although such investment is still limited in number – and it isn’t very easy to implement. However, if you are adamant about the type of investment you want to take part, and it should be halal related, then you may want to learn further about halal investment.
A. Understanding the Concept of Halal Investment
In Islam, everything must adhere to the standard of halal measurement, including in business. When doing business, the investment should be made in companies or projects that go along with Sharia principles. In case you don’t know it, there are two primary criteria for such an investment – leading to different types of halal investment ideas.
The first one is that the investment should be made without interest. Muslims believe that getting money or income from interest is not allowed. Interest (or known as riba) is the debt that is exchanged with a commodity for the extra service or value. Let’s say that you are investing in money lending service where you lend $500 and you expect them to pay you back $600. The extra $100 is considered riba, and it is strictly not allowed in Islam.
Moreover, an investment scheme with a high level of uncertainty (or gharar) is also considered haram. When you read the contract, and it is full of uncertain elements, then it is not halal. In halal investment, the investment nature must be free from gambling or excessive speculation.
The second halal business investment is the one that is free from forbidden and haram activities. Businesses that are related to gambling, interest (riba) based transaction, and alcohol-related activities are all haram. Basically, the casino business is haram because it is related to gambling and alcohol.
However, people have different opinions about the banking industry. Whereas most Muslims believe that the banking industry is haram (because it implements and charges interest), most of them think that Islamic banking institution is halal. They believe that such a banking institution follows more Islamic values and not charge interests for their activities. It depends on personal preference and options, really, so there is no right or wrong in this matter.
B. Some Halal Investment Ideas
If you want to take part in halal investment ideas, be sure that everything follows the primary guidance of what is allowed without having to do any sinful action. If you can do it without riba, then go ahead! If you believe that the business isn’t related to the forbidden things (alcohol, drugs, gambling, etc.), then you can move forward.
Here are just some Halal Investment Ideas that you can take:
- A food truck or van that is selling halal foods to workers (and also passersby) in a busy business district. You can perform a regular check about the quality and also the halal standard of the ingredients
- A halal catering company that supplies food to restaurants, community centres, shops, and offices.
- A wedding planner business for the Muslim community. Through this business, you can help the bride and the groom to create a memorable wedding event that is considered halal to Islam community standard.
- A makeup artist for Muslim girls and brides. A lot of Muslim women are worried about the quality and the halal standard of some skincare and makeup products. You can help them in this regime.
- A bookshop that is focusing on Islamic topics, such as the history of Islam, Islamic laws, Islamic practices, and such thing alike. You’d be surprised to find out that there are countless books about Islam out there!
- A fitness and health consultant service to help clients lose weight, manage their diet, or become more active without violating halal and modesty principles. You can also set up a fitness centre for Muslim women.
- A clothing apparel business that designs and makes clothes (and other supporting fashion accessories) for Muslim women. Fashion, after all, is timeless, and it is one of the most important businesses in the world.
C. Other Halal Investment Options
In case you are living in America, and you are thinking about halal investment ideas, you can always join the already existing and founded business. For example, you can invest in a business like Wahed Invest LLC. Through this company, you can invest your money in (halal) financial assets, like gold, Islamic bonds, or Global Equities. The returns depend on the profits of the underlying asset. They will help you (the investor) to invest in the right projects. Rest assured that they all meet the halal standards. When you join them, you only need to open an account. Investment can start from $100, so everyone can participate.
Iman Fund is another Sharia-compliant investment for Muslims living in America. If you join them, you can enjoy the benefits of flexibility and availability as well as low fee. Investment diversification is also possible – even highly encouraged.
As you can see, the options for smart and sound investment are quite a lot. As long as you are intelligent and creative, you should easily find the best and most suitable halal investment ideas for yourself.