Category: Riba, Loans and Working in Banks

The ruling on holding Shares in Companies that deal in Riba

All praise is due to Allâh and may blessings and peace be upon the servant of Allâh and His Messenger, our Prophet Muham- mad, and upon his family and Companions. To proceed:

Indeed it has reached me that some companies deal in Riba, both in taking it and giving it. The questioners have become numerous among the shareholders and the others concerning the ruling on profits that they get that result from dealings in Riba. Due to what Allâh has obligated of advising the Muslims and due to the obligation of cooperating in righteousness and piety, I decided to inform that whoever does this, it is forbidden and from the major sins. This is as Allâh said:
"Those who devour Riba will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaytan (Satan) leading him to insanity. That is because they say: 'Selling is only like Riba, whereas Allah has permitted selling and forbidden Riba. So, whosoever receives an admonition from his Lord and stops eating Riba, he shall not be punished for the past; his case is for Allah (to judge); but whosoever returns (to Riba), such are the dwellers of the Fire - they will abide therein forever. Allah will destroy Riba and will give increase for Sadaqat (deeds of charity, alms, etc.). And Allah does not like every disbelieving sinner."

Indeed Allâh made that a form of waging war against Him and His Messenger, as He said:
"O you who believe! Fear Allah and give up what remains (due to you) from Riba (from now on), if you are (really) believers. And if you do not do it, then take a notice of war from Allah and His Messenger. But if you repent, you shall have your capital sums. Deal not unjustly (by asking for more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums)."

It has been confirmed from the Prophet that he cursed the person who devours Riba, the person who gives it, its writer and its witnesses, and he said:

"They are the same (in sin)."

And the Verses and Hadiths concerning the warning against Riba and explaining its disastrous punishment are extremely numerous. Thus, what is obligatory upon everyone who practices this from the companies and others is to repent to Allâh from this and leave off dealing with it in the future out of obedience to Allâh and His Messenger. They should beware of its punishments that result as a consequence of it. They should avoid falling into what Allâh has forbidden, acting according to Allâh's Statement:
"And repent to Allah all of you, O believers, so that perhaps you will be successful."

And His Statement:
"O you who believe! Repent to Allah in sincere repentance. It may be that your Lord will expiate your sins for you and enter you into Gardens (of Paradise) with rivers flowing beneath them."

I ask Allâh to help all of the Muslims and us to repent to Him from all sins, and that He protects us all from the evils of our souls and the wrongdoings of our actions. I ask Him to correct all of our affairs. Indeed He is Most Generous, Most Noble. May Allâh send blessings and peace upon our Prophet Muhammad, his family and his Companions.