Islamic Finance Fatawa

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Is the BITO ETF Shariah Compliant?

Question: Is the BITO ETF Shariah Compliant? In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. The Answer: The ProShares Bitcoin Strategy ETF (BITO) is not Shariah compliant. The Fiqh (jurisprudence of the answer): The ProShares Bitcoin Strategy ETF is the first U.S. bitcoin-linked ETF designed to provide investment […]
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Purchasing Foreign Currency Online with Deferred Delivery

Question: Is it permissible to purchase foreign currency online and receive it at a later date? In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.  The Answer:  According to contemporary Hanafi scholars, it is permissible to purchase foreign currency and receive it at a later date as long as […]
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Is it permissible to use master agreements?

Question: Is it permissible to use master agreements? In the Name of Allah, the Most Gracious, the Most Merciful. As-salamu ‘alaykum wa-rahmatullahi wa-barakatuh. The Answer: Using master agreements as a reference for any future transaction is permissible on condition that the offer (‘ījāb) and acceptance (Qabūl) are exchanged at a future date when the parties […]
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Are Meme Tokens Halal? 

Question Are meme tokens halal?  Answer In the name of Allah, the Most Merciful, the Most Kind Whilst it is not possible to give a specific ruling for a specific token, in principle, meme tokens should be avoided due to their high Shariah non-compliance risks and lack of bona fide utility and lack of genuine […]
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A Detailed Analysis of Zakat on Inventory and Investments

To download the research in PDF format Click Here Researched and written by Mufti Faraz Adam, Amanah Advisors Reviewed by Khondamir Nusratkhujaev, AAOIFI, Board member Checked and Approved by Mufti Mohammed Zubair Butt Summary:  Zakat is payable on Amwal al-Tijara. Amwal al-Tijara are inventories purchased for resale in the ordinary course of business. Any asset purchased for resale as […]
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What is the Zakat treatment of crypto-assets?

QUESTION What is the Zakat treatment of Crypto-assets?  ANSWER In the Name of Allah, the Most Gracious, the Most Merciful As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh Answer: The Zakat treatment of crypto-assets depends on two things: The type of crypto-asset The investment and trading strategy in crypto-asset To read more on our explanation of crypto-assets, you can […]
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Treatment of Surplus from Sale of a Collateralised Asset

QUESTION How should surplus from the sale of collateral? ANSWER In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. The Answer: Any surplus proceeds in excess of an outstanding debt realised from the sale of a collaterised asset must be returned to the debtor. The Fiqh (jurisprudence of the […]
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Using Stop-Loss and Stop-Limit Orders in Trading

Question: Is it permissible to set automated buy or sell orders that are triggered automatically when the price meets certain conditions, such as: stop-loss, stop-limit? Answer: Stop-loss and stop-limit orders are permissible to use in and of themselves.  The Fiqh: Stop-loss and stop-limit orders are instructions to your broker (Simsar). As a principal, it is […]
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