Question

1) can one invest in a) properties that have an element of non halal products in their food & beverage such as sale of alcohol or pork items in hotels though income is also earned from room rentals as well as b) investment in properties rented to Tesco, Sainsbury’s, M&S where non halal products are also sold – is there any method of determining?
2) can one engage in being an agent in sale or purchase of these properties though not buying?
JazakhAllah

Answer

This question presents two different models of investment. The first model entails investing in a property that is then rented to a third party who sells haram food or shari’a non-compliant items. This is permissible according to the view of Imam Abu Hanifa as you are leasing your property which is totally lawful. The decision to sell the non-compliant items is the action of a third party, thus creating legal separation.[1]

The second entails investing as a partner in a restaurant or hotel where lawful income is earned, but pork, alcohol or other sharia non-compliant items are also sold. There is no legal separation here. You are the proprietor of the hotel/restaurant and are thus responsible for the activities therein. This principle also applies to investing in publicly traded stocks and shares. According to AAOIFI, which has been accepted as the global standard for Islamic finance and commerce, a company will only be considered shari’a-compliant if the income generated from haram components must be less than 5% of the corporation’s total income.[2]

Your question is not clear if you are the proprietor of the business operating out of these properties or if you lease the property out to a third party. As the answer demonstrates, there is a difference in legal separation between leasing out to a third-party business or owning a share in the business operating out of the property which you also own.

On your second question, you can be an agent in selling such properties, as there is sufficient legal separation.

[1]              الدر المختار وحاشية ابن عابدين (رد المحتار) (6/ 391) (وَ) جَازَ (بَيْعُ عَصِيرِ) عِنَبٍ (مِمَّنْ) يُعْلَمُ أَنَّهُ (يَتَّخِذُهُ خَمْرًا) لِأَنَّ الْمَعْصِيَةَ لَا تَقُومُ بِعَيْنِهِ بَلْ بَعْدَ تَغَيُّرِهِ وَقِيلَ يُكْرَهُ لِإِعَانَتِهِ عَلَى الْمَعْصِيَةِ وَنَقَلَ الْمُصَنِّفُ عَنْ السِّرَاجِ وَالْمُشْكِلَاتِ أَنَّ قَوْلَهُ مِمَّنْ أَيْ مِنْ كَافِرٍ أَمَّا بَيْعُهُ مِنْ الْمُسْلِمِ فَيُكْرَهُ وَمِثْلُهُ فِي الْجَوْهَرَةِ وَالْبَاقَانِيِّ وَغَيْرِهِمَا زَادَ الْقُهُسْتَانِيُّ مَعْزِيًّا لِلْخَانِيَّةِ أَنَّهُ يُكْرَهُ بِالِاتِّفَاقِ. (بِخِلَافِ بَيْعِ أَمْرَدَ مِمَّنْ يَلُوطُ بِهِ وَبَيْعِ سِلَاحٍ مِنْ أَهْلِ الْفِتْنَةِ) لِأَنَّ الْمَعْصِيَةَ تَقُومُ بِعَيْنِهِ ثُمَّ الْكَرَاهَةُ فِي مَسْأَلَةِ الْأَمْرَدِ مُصَرَّحٌ بِهَا فِي بُيُوعِ الْخَانِيَّةِ وَغَيْرِهَا وَاعْتَمَدَهُ الْمُصَنِّفُ عَلَى خِلَافِ مَا فِي الزَّيْلَعِيِّ وَالْعَيْنِيِّ وَإِنْ أَقَرَّهُ الْمُصَنِّفُ فِي بَابِ الْبُغَاةِ. قُلْت: وَقَدَّمْنَا ثَمَّةَ مَعْزِيًّا لِلنَّهْرِ أَنَّ مَا قَامَتْ الْمَعْصِيَةُ بِعَيْنِهِ يُكْرَهُ بَيْعُهُ تَحْرِيمًا وَإِلَّا فَتَنْزِيهًا. فَلْيُحْفَظْ تَوْفِيقًا. (وَ) جَازَ تَعْمِيرُ كَنِيسَةٍ وَ (حَمْلُ خَمْرِ ذِمِّيٍّ) بِنَفْسِهِ أَوْ دَابَّتِهِ (بِأَجْرٍ) لَا عَصْرُهَا لِقِيَامِ الْمَعْصِيَةِ بِعَيْنِهِ

[2] Shari’ah Standard No. (21): Article 3.4.4. pg. 563.

Answered by:
Ifta Research Fellow

Checked & Approved by:
Mufti Abdul Rahman Mangera
Mufti Zubair Patel