Basically they own properties from which they collect rent. Open a brokerage account avoid short selling individual stocks as these have the potential to create interest obligated debt buying an ultrashort etf is a way around debt and interest while still giving the benefits of being able to short a group of stocks research companies you feel are in good financial standing and trade at least mostly in halal no alcohol gambling western bank stocks.
As the sister mentioned gold silver and other precious metals represent a good investment.
How to invest money islamically. The problem is that 2 3 returns are not nearly enough for most people to reach their retirement goals. Briefly here are some alternative ways to invest money as a muslim. For example you can put your money in us treasury bonds and be almost guaranteed to earn 2 3 annual returns on your investment.
Investing money for small returns is incredibly easy and almost fail safe. Rental income from homes and any appreciation of property value is distributed as dividends among the investors. They are all equal muslim.
This is not a stock investment but i m including it here because it is a shariah compliant investment option for muslims. Just be aware that you must pay zakat on them if you hold them more than a year like any capital that you own. Narrated jabir ibn abdullah.
Allah s messenger cursed the accepter of interest and its payer and one who records it and the two witnesses. On interest allah will deprive usury of all blessing but will give increase for deeds of charity quran 2. If a muslim is to invest in the shares of a company these modern scholars tend to require that the business sector of the company generally complies with shari ah one cannot own shares of companies that operate as interest based banks casinos or pork producers for example and the issuer of the share must not undertake its business in a way that is prohibited for example it should not have borrowed money at interest from a bank in order to finance its operations.