Halal is an Arabic word and is very common to Muslims who follow the religion of Islam. Halal simply means things which have been permitted for use by the Muslims by their almighty Allah, and it is correlated with ethics. If you are concerned about knowing if your investing is Halal, let us help you.
Investments which are Halal are also ethical. In order for you to get a deeper understanding of this, let us put forward a small example.
For example, alcohol is Haram (forbidden/not permitted) in Islam and happens to be the opposite of Halal. So, if you invest in an alcoholic firm, then you would want it to make profit by selling more of its product. However, alcohol is not good for the human health and causes severe bodily issues, especially by affecting one’s liver. Thus, by investing in such a firm, you would be expecting to make profit at the expense of many people’s health, and that would not be an ethical act. Thus, what is not Halal is also not ethical and vice versa.
FAQs about Halal Investing
In short, Halal investing helps you to earn entirely ethically where you do not have to worry about earning profits from companies or institutions which do not operate ethically and cause harm to other groups of people/animals.