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These are answers unanimously approved by all members of the Fiqh Council of North America.

Zakah on Stocks

Drafted by Shaykh Umer Khan. Approved by the Fiqh Council. All praise is due to Allāh ﷻ, and may peace and salutations be upon the Prophet ﷺ. Stocks As a Form… Read More »Zakah on Stocks

What is the Islamic ruling on investing in stocks?

Investing in common stock of a company is permissible if the company’s main business is permissible, interest-bearing loans are <30% of market value, interest-bearing deposits are <30% of market value, and unlawful income is <5% of revenue. Unlawful income should be purified. Also note that the following are not permissible: preferred shares, margin trading, short selling, CFDs, futures, forwards, options, and other derivatives.

Zakat on Retirement Accounts

Zakāt on retirement funds is an annual obligation due on the withdrawable amount – meaning the amount one would possess if they were to liquidate the account and pay any penalties and taxes.

What is the ruling on female circumcision?

All the various forms of female circumcision are not permissible. There is no definitive basis in the Qur’an and Sunnah that requires or recommends female circumcision.