Wearing a Pendant that has Allâh's Name Inscribed on it

Question :

All praise is due to Allah alone: The following question was addressed to the Permanent Committee for Scientific Researches and Religious Verdicts by Muhammad 'Abdul-'Aziz:

Along with this letter, I am sending to you a piece of gold jewelry with Allah's name inscribed on it; our Muslim women wear it for the sole purpose of adorning and beautifying themselves, For a time now the brothers from the Office for Propagating Good and Forbidding Evil have warned us that wearing jewelry with Allah's name on it is unlawful. I would like to add that only the Muslim women wear this to adorn themselves in a way that differs from the Christians and Jews. The Christians inscribe the cross on their jewelry, and the Jews inscribe the Star of David. Please look into this matter for us.

Answer:

Because this jewelry has the name of Allah inscribed on it A for the purpose of Muslim women wearing it on their chests like Christian women with the cross and Jewish women with the star of David, because they might wear it as a charm to bring them good or ward off evil, and because they might debase something that has Allâh's name written on it by sleeping on it or taking it to filthy places (like the toilet), the Committee holds the view that it is not permissible to wear such jewelry.

This is in keeping away from resembling the Christians and Jews which the Muslims are forbidden from imitating. This is also out of the sense of preservation for Allah's Name and its importance as well as the generality of the prohibition of wearing amulets.

With Allah is the facilitation to do what is right. May Allah send peace and blessing on Muhammad, on his family, and on his Companions.

Source:
The Permanent Committee
Fatawa Islamiyah, Vol. 7 Pages 386-387