Distributing Business Flyers During Jumuah

Q: Is it permissible to get a non-Muslim to stick business flyers to car windscreens on Friday during Jumuah?

A: It is permissible to get a non-Muslim to stick flyers to car windscreens during Jumu'ah.

Transporting Alcohol

Q: We are a transport company and have an opportunity to transport alcohol. Is it permissible to do so?

A. It is not permissible to transport alcohol. It is mentioned in a Hadeeth that among the ten people cursed for involvement in wine, one is the transporters.
(Ibni Maajah V2 P1121)

Moulana Yusuf Laher
Checked and approved by: Mufti Siraj Desai

Dealing in Real Estate

Q: Is it halal and right in Islam to deal in real estate sale purchase work in North America?

A. Real estate is trading in property and this is a lawful and Halaal form of trade, regardless which country one works in provided one goes about the business with honesty. If there are certain special rules you wish to know regarding this type of occupation, then please do so. You are most welcome.

Mufti Siraj Desai

Female Doctor Treating a Male

Q: Can a female doctor treat male patients?

A. A non-mahram female may not see any part of the body of a male and vice versa. Likewise, close communication between non-mahrams of the opposite sex is not allowed in Islam. On this basis, it will not be permissible for a female doctor to treat male patients, just as under normal circumstances it is not permissible for a male doctor to treat a non-mahram female.

However, cases of emergency are excluded from this prohibition. For example, a male has been seriously injured in an accident and needs urgent medical attention and no male doctor is available, or a man suffers a sudden collapse of organs and requires immediate attention. Under these cases it will be permissible for a female doctor to treat the male patient. Another example of emergency is when the female doctor is the only one who provides treatment in a certain specialist field, such as a neuro-surgeon or heart specialist etc. and surgery needs to be carried out. In these extreme cases Shari'ah lifts the restriction for both males and females.

The same principle as above will apply to a male doctor treating female patients.

And Allah Ta’aala knows best.

Mufti Siraj Desai

Buying a Diamond Mine

Q: What is the ruling of buying a diamond mine in Islam? I'm looking to go into partnership in buying a mine. What ruling is there that I need to be aware of?

A. According to our Shari'ah it is totally permissible to purchase a diamond mine or any other mine. Here are some basic rules to remember:

1) A condition for buying and selling a mine is that the original owner or owners should have acquired the land lawfully and started mining on that land. Once this condition is found then the mine can be sold and resold to different buyers. Such a deal will be regarded as a normal sale in Shari'ah, and the rules of a normal sale will apply. This is permissible and the earnings of that mine will be Halaal.

2) It is permissible to purchase the mine on credit; that is, paying for it over a period of time in fixed instalments.

3) If a partnership is created then it is necessary that a fixed percentage be fixed for each partner. It must be stated in the partnership agreement that the parties will share in whatever comes out of the mine according to these percentages. The percentages can be mutually agreed upon and can vary.

4) All expenses related to the mining must be shared by the partners and will be paid out from the profits before distribution.

5) The partners will also share any losses suffered in the course of their mining business.

6) Normally there is no Zakaat on the value of diamonds. However, if the diamonds are for resale, as will happen once the diamonds are removed from the mine, then Zakaat on those diamonds will be compulsory, because now the diamonds are merchandise or stock. You have to consider the current market value of the diamonds when calculating Zakaat on them. Also note that Zakaat on those diamonds will only be due after one Islamic year has passed from the time the diamonds were removed from the mine.

And Allah knows best

Mufti Siraj Desai

Insurance for Charitable Organisation

Q: As a registered charity, we have to take out insurance for the building and public liability cover. One aspect of that insurances is that it covers the trustees in case of death. One of our trustees has passed away and we now have a dilemma, can we make a claim against that insurance as he was covered by the insurance? We did not knowingly take out the insurance for the cover, we only found out after wards when we were reading the small print and cover.

A: There are numerous charitable organisations and committees that operate mosques and Madresas, and none of them ever needed to take out insurance. This is, therefore, not a necessity. Insurance is Haraam because it involves interest and the element of chance, which is a factor found in gambling.

From an Islamic point of view Waqf property does not need insurance because should anything happen to the property, which was not due to the fault of the trustees, no one is responsible or liable. If a trustee or more are guilty of actions that caused damage or loss then they will be held responsible. Sometimes by taking out insurance on Waqf property, the door is opened to abuse or unwarranted risk-taking by unscrupulous trustees and members.

Your duty is to cancel the insurance with immediate effect. Furthermore, no claim is permissible against the death of the one trustee, for any money received thereby will be Haraam and may not be used for any Deeni purpose.

And Allah knows best

Mufti Siraj Desai

Dealing on the Stock Exchange

Q: I would like to know whether it is permissible to invest in the stock exchange. Obviously, I will endeavour to ensure that the companies in which I invest in does not involve itself in the selling of haraam products.

If it is permissible, please also advise me on what other precaution/s needs to be taken eg. Do I need to remove an interest portion when selling the shares etc.

A: Investing or buying shares in the Stock Exchange falls under the Islamic transaction of Shirkat or partnership. The Shari'ah has ordained a fixed set of rules to govern the different forms of partnership.

For example, in an Islamic partnership one who invests in a running business becomes the owner of all the stock and assets of that business in proportion to the investment. But when considering the method and procedure of buying shares on the Stock Exchange, it emerges that the purchaser or shareholder who has bought stock is not considered a real partner. In the Stock Exchange the investors don’t become partners in the assets such as fixtures and fittings, or property if any, nor do they own a share in the stock of the company. They are only entitled to a share in the profit. This is contrary to Shar’ee partnership.

Secondly, in Shar’ee partnership profits must be apportioned according to percentage, but this is not the case with shares. Instead, the company’s stock and assets are divided into a fixed number of shares and sold at a fixed price to buyers. When one buys a share one has invested that amount of money into the company. In return one should be promised a portion of the profits. What the Stock Exchange does is it awards shareholders a share of the profits in proportion to the value of their share certificates at a particular time of the year. That value may fluctuate for a number of reasons, as I shall outline further. Islamic partnership demands that the profit should be stipulated in advance and should be in a percentage form and should be commensurate with profits generated by the company after deduction of expenses and overheads.

When one sells share certificates, one is not selling his share in the company. It is merely a “right to profits” that is being sold, and this in itself is not permissible. Mere rights may not be sold according to Shari'ah.

Another point of departure from an Islamic perspective is that the rise and fall of share values on the Stock Market is not always influenced by the profits generated by the company. There are a number of political factors that enter the equation when determining share values. So when one decides to sell his or her share certificates, one may not obtain a value that is commensurate with the profits generated by that company. This in itself invalidates any form of partnership. As such, when one sells shares there is an element of Ribaa or interest involved because you are selling an intangible value in exchange for money. Had the share certificate entitled one to a proper and fully fledged share in the company’s assets, property, and stock, then at least it could be said that one is selling a portion of a tangible commodity which is valid in Shari'ah. But that is not the case in Stock Exchange shares.

Furthermore, a rule of partnership is that any partner wishing to sell up has to offer his share to the current shareholders, not to any outsider. This rule is also broken in the current Share business because one may sell to any willing buyer one wishes.

For these reasons and more, it will not be permissible to trade in the Stock Exchange.

And Allah The Almighty knows best.

Mufti Siraj Desai

Renting and Water Services

Q: The building we live in has no water meter. The connection is direct from the underground water pipe which is unlawful. The tenants have requested that the landlord rectify it on many occassions but to no avail. The Metro is laying new water pipes and soon the old pipes will be disconnected.

1. Is the above unlawful?
2. Should the water be cut, what is the responsibility of the landlord towards the tenants?

A. It is the responsibility of the landlord to provide the tenants with water, so this demand should be made from the landlord. We suggest that all the tenants apply pressure on the landlord to rectify the situation before it gets worse. Should the water supply be cut, it will be the landlord’s duty to restore the connection. The current situation is not unlawful but will later on lead to serious complications, therefore the above advice.

And Allah knows best.

Mufti Aadil Moosagie
Checked and approved by: Mufti Siraj Desai

Trade Discount as Charity

Q: Is it permissible to give a trade discount and make intention for sadqa (charity)?

A: When one gives a trade discount it is not like giving cash or its equivalent to the customer; hence this cannot be intended as Sadaqah. After giving a discount the end result is, according to the rules of Fiqh, that the customer is paying a reduced amount for the item, and has not received any cash back. For Sadaqah to be effective the recipient must receive cash or kind from the donor.

We suggest that should you intend Sadaqah in your trade then let the customer pay the full price and then refund him a portion of the price with the intention of Sadaqah. You don’t need to mention that it is Sadaqah. When he gets this cash amount, automatically the Sadaqah will become effective and you would have earned your reward.

And Allah knows best.

Mufti Siraj Desai

Selling Insurance

Q: I am unemployed and need to find employement as soon as possible. I live in a small town and the only job I can get is to sell insurance for a big company. Is it permissible for a Muslim to sell insurance products that include educational plans, investments, pension plans and funeral cover?

A: Insurance is a procedure that involves two unlawful elements: viz; interest and chance. Interest is found because one pays into the fund a certain sum of money in premiums, and then gets back a far greater sum if and when a payout is made. The chance factor, which is also found in gambling, arises because one is uncertain whether an incident will occur that will warrant a claim. Islam prohibits this for a number of reasons. The prohibition of interest or usury is well known. On this basis, any form of insurance that has these two elements will be Haraam. The interest factor alone is enough to render any transaction or deal as Haraam.

You need to put your trust firmly in Almighty Allah. Don’t ever believe that the only job available is selling insurance policies. This is a test from your side and with a little bit of positivism you should pass this test, Inshaa Allah. With trust in Allah and perseverance, other doors will open for you. Be assured that if you withhold yourself from Haraam employment for the sake of Allah, He will certainly open up other avenues of sustenance and income for you. It is a tough challenge, and made much more difficult by the negative promptings of Shaytaan, but you just need a little bit of will-power and self-control to keep yourself in check.

The Messenger of Allah (Alayhis-salaam) once said to a Sahaabi: “Seek a Halaal livelihood for you and your family, for verily this is a Jihad in The Path of Allah. And know that the Help of Allah lies in pure trade.” (Majma’uz-Zawaaid, Chapter on Trade)

Another Hadeeth states: “Let not a delay in sustenance (e.g. unemployment) drive you to seek it in the disobedience of Allah, for you will only get what is by Allah through His Obedience.” (Tabarani, from Abu Umamah Radhiyallaahu Anhu).

May Allah Ta’aala grant you an easy and Halaal source of income, Aameen.

Mufti Siraj Desai

Selling Products to Bankers

Q: Does Islam allow to sell grocery products to bankers?

A. Yes, it is permissible to sell goods to bankers as it is permissible to sell goods to other Kuffaar. Rasulullah (Sallallaahu Alayhi wa Sallam) and the Sahaabah did trade with Jews and idol-worshippers, and we know that these people indulged in usury and Ribaa. The Holy Qur'aan did not prohibit this.

Mufti Siraj Desai

Females Working at Juma Time

Q: Is it true that Muslims regardless if they are making Jumah Salaah or not (e.g. a menstruating lady) must close their business & not receive any income for the duration at all?

A. Those people upon whom Jumu'ah Salaah is Fardh, such as adult males, must stop trading when the first Adhaan goes for Jumu'ah Salaah. It is Haraam for them to continue trading. If there is a female is in the shop during Jumu'ah time, the income will be Halaal but females should not be in business at all, whether they are menstruating or not. This is a separate issue from the question of trading during Jumu'ah time.

Mufti Siraj Desai

Shaving Beard Due to Job

Q: Is shaving off the beard permissible because one's job does not permit it? What should one do if in this situation?

A. The Hadeeth clearly states that there is no obedience to the creation if in it lies disobedience to the Creator. (Al Mu'jamul Kabeer V18 P177). You are being tested and if you pass this test there is unimaginable reward and benefit for you Inshaa Allah Ta'aala.

If the job does not allow you to keep a beard, you have no choice but to resign and seek another job, even if it pays less than the first. By respecting and fulfilling the law of Allah, Allah will compensate you in many ways Inshaa Allah.

Moulana Yusuf Laher

Practicing Law

Q: If a person studied BCom Law, what type of job in this field is allowed and doesn't go against our shariah (Islamic Law)?

A. Firstly, if a female has acquired this degree then she is not allowed to work among men or interact with men during the course of this work. To do so is Haraam.

Secondly, one may do any work or business which does not involve interest, either directly or indirectly.

Mufti Siraj Desai

Buying Online Shares

Q: My question revolves around online share trading. Is it permissable to trade in company's shares? Nowadays, everything is done electronically, but when you purchase a share, you don't physically receive a share certificate as everything is now digital. However, you definitely own a share in the company as you will receive correspondence as well as be able to vote in company meetings.

If we are allowed to trade in shares, would it be permissable to invest in companies who earn interest. This is not their primary business, but due to monies being in a bank account, it accrues to the company.

A: When one purchases a share on the stock exchange then it means one has become the owner of a share in a particular company. All information related to the share purchases is communicated to the shareholder; hence it will be permissible to buy into these companies as long as the company is not a casino, a brewery or any enterprise that deals in haraam.

Based on the above, it will be permissible to purchases these shares online, via the internet.

And Allah Ta’ala knows best

Mufti Siraj Desai

Trading in Currencies

Q: Can one buy and sell foreign currencies?

A: Trading in foreign exchange by buying and selling currencies is totally permissible provided at least one of the two currencies is present and take into possession at the time of the transaction. If a deal of this nature is done whole none of the two commodities is present, it will not be permissible. This obviously applies to the exchange of different currencies such as rands for dollars, or dollars for riyals, and so forth.

And Allah Ta’ala knows best.

Mufti Siraj Desai

Renting to Bank

Q: Is it permissable to rent out our premises to the bank?

A. Letting premises to banks is not allowed, for the core income and basis of all dealings of banks is interest (Ribaa).

Mufti Siraj Desai

Trading in Foreign Currencies

Q: 1) Is it permissable for me to buy foreign currency at lower than the market rate in this way, that the seller gives me the pounds, we agree on a rate then I give him the money later?
2) How is the market rate calculated? Will the spot rate be considered (what we hear on radio or see on currency converting sites), or will the rate given by the bureau be considered (including their commission or excluding)?
3) Is it permissable for me to charge a commission when exchanging currency like all other bureaus do?

A: Currencies that are in vogue today will fall under the category of trade commodities. Therefore, the price charged for these currencies is left to the mutual agreement of the two parties, regardless of what is being charged on the foreign-exchange markets. Whatever the two parties agree upon, that price becomes binding. However if both parties decide that we will not fix our own price but will instead consider the market price then you are faced with the question of which market price to consider. Well in our humble opinion one has to consider the price of the currency as given in the local media (radio, newspapers, etc.)

It will not be permissible to charge a commission. Rather increase the price of the currency but without commission of any sort.

And Allah Ta’aala knows best

Mufti Siraj Desai

FNB Islamic Smart Account

Q: I recently opened an Islamic Smart Account with FNB (South Africa). I would like to know if the profits paid on this account are indeed in compliance to the shariah and whether I may utilse the profits.

A: The Islamic Smart Account:

The money that is deposited into this account is ring-fenced (confined) and used by Wesbank Islamic Finance to operate their vehicle finance business, which is basically buying vehicles on behalf of people and reselling to them at a profit mark-up. The profit earned on these deals is distributed to the Smart Account investors (depositors) on a pro-rata basis, i.e. in accordance with the funds they hold in the Smart Account. Such a system is known in Shari'ah as mudhaarabah which means the investing of capital by one party and working that capital to earn profit by another party. So this is totally permissible.

Mufti Siraj Desai

Forex Trading

Q: Is online Forex trading aloud in islam?

A: According to our research, Forex Trading is not allowed. Forex is basically trading over the internet without physical possession and delivery of currency. Shari'ah has placed certain restrictions on currency trading so that Muslims can be safeguarded from Ribaa or interest. One condition is that at least one of the two currencies being traded in has to be taken possession of in a physical sense. This does not happen in Forex trade. In fact, from one angle it appears that this type of trading is more ‘virtual’, ‘imaginary’, and ‘figurative’ for one sells dollars in exchange for yen, for example, but the trader neither owns the dollars nor the yen. Any profit earned in such a deal will be equivalent to interest or riba. This is obviously not allowed in Shari'ah.

And Allah Ta’aala knows best

PS. For an in depth look at the Forex Trading get-up against Shari'ah Law, our files are available on request. However one will need some knowledge of the technical terms of Fiqh in order to understand these writings.

Mufti Siraj Desai