Question

From Islamic Finance prospective, Write a critical note on Shariah investing in companies.

Answer 1

Shariah investing in companies is based upon the principles of Quran and they follow the Shariah law.These portfolio follows the rules laid in Quran about investment in companies. This type of financing is common in islamic countries.

These funds advocates that a muslim should not invest in such companies that causes any loss to the society or environment as Muslims are peaceful and harmless people who follow the principles of Islam.

Shariah portfolio management company have high restraint towards investing in companies like alcohol, production of weapons, gambling, Tobacco company.

These companies governed by the fundamentals of Islamic finance which is based upon fundamentals of Sharia laws.