Fatwa: # 14854
Category: Financial Transactions
Country: South Africa
Date: 1st February 2007

Title

Are investments in AlBarakah Bank and Oasis Crescent Funds Halal?

Question

Could you please advise if the returns from a savings account or general investment account in Albaraka Bank are halaal or not?
Also, are similar investments in the Crescent Oasis fund halaal?
If not, is there ANY known organization where one can invest his savings for halaal returns(besides property which may not be affordable)?

Answer

In the name of Allah, Most Gracious, Most Merciful

1. We do not regard the returns from Albaraka Bank to be Halaal. In the past we have tried, with much frustration, to communicate with them but they have shown clear reluctance in being transparent as far as Shariah Compliance is concerned. We have been through some of their contracts and workings, and found them to be seriously flawed.

AlBaraka does not have any local Aalim on its so called Shariah Supervisory Board. If there is any local Aalim who approves of their products, we would like to know his name in order to engage with him on the issues.

In the light of this, it is our duty to caution the Muslim public from investing with AlBaraka Bank.

2. Similarly, the returns from Oasis Crescent Fund are not Halaal. We had met with them, but they were unwilling to divulge details of their investment portfolios. When we expressed our disapproval of their products on our website, they threatened to take us to court. What is particularly disturbing is that this company is owned and run by Muslims, but some of their products are without a shadow of doubts clearly haraam. When they themselves are engaged in haraam, what trust can one have that their so called "halaal" products are in fact acceptable in Shariah?

3. Unfortunately, we receive this type of query very often, but have no solution on hand. Many people are looking for purely Halaal investment portfolios.

Since we are not in the business field, the solution would lie with businessmen who have good entrepreneurial skills. They should come up with such products. We would be most glad to contribute in as far as the Shariah Compliance is concerned. I assure you that there is a huge market just waiting to flood funds into an investment scheme that is thoroughly vetted and approved by the Ulama. We therefore would like to invite all businessmen to apply their minds in this direction, and come up with a viable investment scheme run strictly according to the Shariah. Those interested should feel free to contact us.

And Allah Ta'ala knows best.

Was salaam

E. Vawda, for Daarul Iftaa

Checked and approved: Mufti Ebrahim Desai Saheb.

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