What is Halal Investment?
Investment Halal is an investment that is governed by all instructions defined in the Qur'an, the Islamic Holy Text. There are two main aspects of Halal Investment. The first is that the investment must not generate interest. The company or industry in which one invests should also be Halal in its events, limiting investments in some companies, such as those that produce or sell alcohol. In addition to these instructions, Muslims can freely invest in any desired way. This restriction is carefully explained in the Qur'an. Inactivity earnings are not allowed. According to this rule, profit sharing is allowed because it is the result of hard work; There is no interest earned in the savings account.
Interest restrictions led to a number of financial instruments that allow Halal to invest. One of them is the trust in real estate investment (REIT). This is a way for the investors group to put their money into a commercial property with the intention of developing them only for Halal companies. Investors put money into the development of real estate, which is Halal investment, and then later removes their money from trust and sells the land. The profit is obtained from the lease of paid Business.
Another investment of Halal is life insurance. There is some debate about whether it is really halal, but some types are generally accepted as permissible. One of the reasons is that insurance provided through an employer can be considered a grant. Another reason is that it is not certain that the insurance contract will sometimes be paid, so it is not really a contract, so it is allowed.
The second part of what Halal's investment is that no money can be obtained from forbidden or Haram , businesses. This means that the feature cannot be rented that other types of investment, albeit indirect, cannot benefit from the forbidden industry. The Haramian company is the one that violates the Islamic Sharia law like the eagleBoth alcohol, handling of Haramic animals or gambling. This rule applies to the rental of reit and investment that could support life insurance.
Several investment companies that strictly adhere to the Sharia law have successfully appeared and actively works with special financial considerations of larger banks that do not follow Sharia. These institutions have successfully integrated Halal investment strategies and have still made profits. They are responsible for the development and sale of several Reit real estate around the world.