Halal Investing
Halal investing refers to investment practices that comply with Islamic law, or Shariah. This means avoiding investments in businesses that engage in activities considered haram, such as alcohol, gambling, and pork products. Instead, halal investments focus on ethical and socially responsible companies that align with Islamic principles.
To ensure compliance, many investors seek guidance from Shariah scholars or use halal investment funds. These funds typically screen companies based on their business activities and financial ratios, ensuring that investments are both profitable and permissible under Islamic law. This approach allows Muslims to grow their wealth while adhering to their faith.