The Islamic Fiqh Council belonging to the Organisation of the Islamic Conference issued a statement concerning shares in its seventh conference, held in Jeddah, 7-12 Dhu’l-Qa‘dah 1412 AH/ 9-14 May 1992 CE, in which it says: (a)As the basic principle concerning transactions is that they are permissible, founding a share-based company that has Islamically acceptable aims and activities is something that is permissible. (b)There is no difference of opinion concerning the prohibition on holding shares in companies whose basic aims are haraam, such as dealing in riba, or producing or trading in haraam things. (c)The basic principle is that it is haraam to hold shares in companies that sometimes deal in haraam things, such as riba and so on, despite the fact that their basic activities are Islamically acceptable. End quote from Majallat al-Majma‘, issue no. 6, vol. 2, p. 1273; issue no. 7, vol. 1, p. 73; issue no. 9, vol. 2, p. 5.
Fataawa al-Lajnah ad-Daa’imah, 14/299:
The basic principle is that it is permissible to hold shares in any company if it does not deal with haraam things such as riba and so on. But if it does deal with haraam things such as riba, then it is not permissible to hold shares in it.
Based on that, if any of the shares mentioned are in a company that deals with riba or haraam things, then it is essential to withdraw from it and get rid of any profit by giving it to the poor and needy. End quote.
Shaykh ‘Abd al-‘Azeez ibn ‘Abdullah ibn Baaz, Shaykh ‘Abd ar-Razzaaq ‘Afeefi, Shaykh ‘Abdullah ibn Ghadyaan, Shaykh Saalih al-Fawzaan, Shaykh ‘Abd al-‘Azeez Aal ash-Shaykh, Shaykh Bakr Abu Zayd
Question:
What is the ruling of dealings with shares whilst knowing that a person does not know whether he will benefit or lose?
Answer:
Shares in companies or businesses that are known for halāl (permissible) transactions, who do not deal in usury and interest – and their dealings are known and regulated, then there is no harm in that. As for dealing [i.e. buying shares] with those companies whose trade is unknown or those which take interest-based loans for their enterprises or they finance their projects with interest-based loans, or they leave their funds in a bank gaining [interest] – it is not permitted to take shares in these companies nor to enter [into investments with them]. The same goes for shares in those companies that you do not know in what they do business. So it is a condition that the company whom you deal with [by investing with them] in buying and selling, that you know it, encompass and understand it, and it cannot be something unknown to you.(Tawjihāt Muhimmah ilā Shabāb il-Ummah of Shaikh Al-Fawzān, p. 27-28 (Dārul-Mirāthin-Nabawee), slightly abridged.)