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Stocks & Shares Jul 13, 2026

Mixed Companies: Zakat and Purification

Question

What is the ruling on investing in and paying zakat on shares of a company whose core business is halal but which has some interest income or debt?

Ruling (Fatwa)

Short answer: If the core business is haram (interest banking, alcohol, gambling), trading its shares is impermissible outright. If the core is halal but mixed with interest dealings, taqwa demands avoiding it; those who invest under shariah screening standards must purify the portion of income from haram sources by giving it away. Zakat on shares you own remains obligatory in all cases — haram admixture never waives zakat. Details: Purification money is given purely to be rid of it, without expecting reward, and can never be counted as zakat — 'Allah is pure and accepts only what is pure' (Sahih Muslim 1015). Zakat itself must be paid from halal wealth, per the share type (full market value for trading; the long-term method otherwise). Evidence: Quran 2:275 and 2:279 (riba); Sahih Muslim 1015; Quran 5:2 (no cooperation in sin); contemporary evidence-based scholars and fiqh boards on mixed companies and purification. For complex individual cases, consult a qualified scholar.

References

Quran Quran 2:275, 2:279; 5:2
Hadith Sahih Muslim 1015
Fiqh contemporary scholars; shariah screening standards