Pearl of Wisdom

?O Um Ayman! Did you not know that my brother Jesus never kept dinner for breakfast or breakfast for dinner?! He would eat from the leaves of trees, drink from rainwater, wear hair-cloth, sleep wherever he was, and he would say, 'Every day comes with its own sustenance.'

Prophet Muhammad al-Mustafa [sawa]
Ibid. no. 32358

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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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