Seminar Summary - Is Investment Encouraged In Islam? (27 June 2013)

7/04/2013 10:57:00 am


I recently went for a property investment seminar on Thursday, 27 June 2013, conducted by Walton International Group. I got to know about this seminar from Islamic Events's newsletter. Here is the advertisement:

What caught my eye about this advertisement was the title of the seminar: "Is Investment Encouraged In Islam?"

An attractive headline which brought me forward to come for the seminar. So, what was being covered during the seminar? Let's start it with a verse from the Al-Quran.

"O my people! worship Allah: ye have no other God but Him. It is He Who hath produced you from the earth and settled you therein: then ask forgiveness of Him, and turn to him (in repentance): for my Lord is (always) near, ready to answer." (Hud:61)

This verse basically is a reminder to all of us that the place that we are currently living, this Earth, is meant to be a place to live in, construct and take ownership, which is a form of a mean of fulfilling a Divine command. How is that so? Basically, it is about a relationship of a person and the earth, on a basis of because of Allah. Sounds confusing? It actually means, we should do good to the land we are living in, in many ways, such as farming, building homes to live in etc, which are a means for us to live and also to constantly be aware of Allah, our Creator.

Why is Investment important?
Money cannot remain the same, otherwise to give Zakat. The money you earn, needs to be used to purchase your daily necessities and therefore the money will be circulated into the economy. 

Money is just a platform for you to acquire your needs and wants. It is neutral. So, this is where investment sets in. 

Investment is important as:
  1. It generates job opportunities and develop the society
  2. It teaches the investor dependence on Allah. "Although they plan, Allah also plans. And Allah is the best of planners." (Al-Anfal:30)
  3. It secures growth for the society.
  4. It enables the person to realize the importance of effort.
  5. It is a means of earning from halal venues.
  6. It is also income in old age. 
What makes Investment haram?
Riba'. It causes people to be lazy. Because they expect the interest to generate higher returns.

So, with money, we are encouraged to be innovative. Think whether you can use the money to set up a new business or it can also actually develops you, by signing up for courses to further upgrade yourself.

Businesses strengthens the community through communication, which enables the society to grow and expand.

Therefore, the seminar leads to the actual topic: Real Estate Investment. I have some clients of my own who actually asked me how do they go about investing in Real Estate. Most of them have the same thought of loaning money from the bank, to invest in Real Estate (I will cover this topic, insyaallah, in my next blog post.).

Why Real Estate?

  1. Creating a relation between Muslim and Earth
  2. No cheating in real estate generally (less gharar) gharar means deception
  3. Establishing people in lands. "O our Lord! I have made some of my offspring to dwell in an uncultivable valley by Your Sacred House (the Ka'bah at Makkah); in order, O our Lord, that they may perform A-Salât (Iqamat-as-Salât), so fill some hearts among men with love towards them, and (O Allah) provide them with fruits so that they may give thanks. (Ibrahim:37)
  4. Moving from property to property (importance of ownership). "He who sells a house or a property and does not invest the revenue he made in something similar to it, is more likely to lose blessing." (Musnad Ahmad)
  5. Concept of ihya al-mawat or Bringing Unused Land to Life. "Whoever reclaims a land that does not belong to anyone, he deserves it more than anyone."
What is the Islamic Contribution?

  1. Sincerity of intention (not only to own but to serve)
  2. Price acquired from halal (no money laundering)
  3. Interest-free purchases/no interest-based loans
  4. No reselling before real owning
  5. No renting for haram purposes
  6. Being innovative and selective in choosing the purposes for which the land will be used (planning)
  7. Observing the effect of land use on prospective residents
  8. Muslims are encouraged to diversify the Shari'ah compliant solutions/give in rather than give up
  9. Muslim communities / businessmen are islamically bound by means of collective duty to fill this gap as this is one of their responsibilities towards the money they have.
Therefore, it is the end of my summary regarding this seminar. Insyaallah, I will be covering on my next blog post regarding "Is it advisable to borrow money to invest in Real Estate?". Amin.


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My objective of creating this page is to reach out to more people, to educate about Islamic Finance and Individual Finance, share tips on financial planning and also be able to answer to everyone's queries. So, feel free to share this page and ask me questions. Let's share the knowledge and practice them together. In syaa Allah. Aamiin.