Pearl of Wisdom

'Allah Almighty revealed to David (AS), 'You would be a great worshipper, if it was not for the fact that you consume from the treasury and do not labour at all with your own hands.' He said, 'David (AS) then cried, so Allah revealed unto the iron, 'Soften yourself for my worshipper David, and it did.' So, Allah softened the metal for him, and he used to make an armour shield every day, and would sell it for one thousand dirhams. He made three hundred and sixty shields and sold them for three hundred and sixty thousand dirhams, and hence he no longer needed the treasury.'

Imam Ali ibn Abi Talib [as]
Kitab man la yahdurahi al-Faqih, v. 3, p. 162, no. 3594

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Question : #532 Category: Business / Investment
Subject: investment in bonds
Question: Is it haram to invest in bonds?
Answer: Depending on the interest source.

So yes, if an agreement is made between the lender and the government that a fixed amount of interest will yield on the principal of the bonds.

However, if no such condition is stated and with the understanding that you would not require the borrower to pay you interest, then in that case you can invest in such ventures and use the full amount of interest, if it is a bank of the unbelievers (kafir).

If it is a Muslim bank, then you have to distribute half of the interest money to the poor and the other half belongs to you.

SOURCE: Ayat. Khui, Masailah wa Rudud, p. 113

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