I will be graduating soon from university with a masters degree in computer science. I will get a good salary when I start working and I will save about 1000 euros each month. However I'm looking for a way to invest my money, but in a halal way because I'm a Muslim. The halal way is simply that there shouldn't be a fixed interest rate for the investment. In the most simple form, a halal investment is like going to a merchant and giving him some money and tell him to use it to make business. If the business succeeds then I take profit relative to the investment I made. If the business loses, then I lose the money. So halal means I could lose or profit. Not in the banks where I'm always guaranteed to profit a fixed amount each month or year.

Can you please recommend halal ways to invest and grow my saved money?

Edit: I need to assert that my definition of halal investments here is very very basic. If you are a Muslim or have knowledge in Islamic finance, then I guess this question is targeted for you. Also if you know some Muslims who do halal investments, then probably you also are a target for this question :)

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    Invest in stocks and shares, rather than putting the money in a bank savings account / buying bonds?
    – Gagravarr
    Commented Aug 13, 2014 at 11:37
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    So, to summarize: DAX, MDAX, SDAX, and as a computer scientist, TecDAX, of course. :)
    – Alexander
    Commented Aug 13, 2014 at 11:55
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    halal rules of course face the same problem as legal rules: there are many novel complex financial products, and it's unclear how to apply the age-old rules. That said, vanilla convertible bonds may be a reasonable option, especially those which don't pay interest. You might benefit from a share price increase, but you're protected against a share price decrease, at the expense of not receiving interest (which usually would be a downside). Or just buy German government debt, that's currently at 0% interest anyway.
    – MSalters
    Commented Aug 13, 2014 at 13:04
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    @MSalters He wants to "grow" his money, not give it for free (~0%) to the German government.
    – user13041
    Commented Aug 14, 2014 at 12:32
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    @user13041: So? Bonds trade on the open market, and can go up or down, just like stocks. Just not a whole lot.
    – MSalters
    Commented Aug 14, 2014 at 13:26

4 Answers 4


The UK has Islamic banks. I don't know whether Germany has the same or not (with a quick search I can find articles stating intentions to establish one, but not the results). Even if there's none in Germany, I assume that with some difficulty you could use banks elsewhere in the EU and even non-Euro-denominated.

I can't recommend a specific provider or product (never used them and probably wouldn't offer recommendations on this site anyway), but they advertise savings accounts. I've found one using a web search that offers an "expected profit rate" of 1.9% for a 12 month fix, which is roughly comparable with "typical" cash savings products in pounds sterling. Typical to me I mean, not to you ;-) Naturally you'd want to look into the risk as well.

Their definition of Halal might not precisely match yours, but I'm sure you can satisfy yourself by looking into the details. I've noticed for example a statement that the bank doesn't invest your money in tobacco or alcohol, which you don't give as a requirement but I'm going to guess wouldn't object to!

  • Yeah halal is more than what I actually meant in my definition. Yes investing in companies that work in tobacco or alcohol is not halal. Or any company that does harmful stuff.
    – Jack Twain
    Commented Aug 13, 2014 at 22:09
  • Unfortunately we don't have Islamic banks in Germany yet.
    – Jack Twain
    Commented Aug 13, 2014 at 22:10
  • @AlexTwain: In that case I guess you have a two-part problem. (a) what countries can I hold a bank account in? (which is a finance-related question, and hopefully leads you to a country that does have Islamic banking). Failing that (b) how can I assess whether a savings product is halal? (which is a combined question in finance and Islam, and probably quite tricky). "Regular" banks will lend your savings at interest, so I presume are out even if they don't pay a fixed rate for some reason... Commented Aug 14, 2014 at 10:52
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    ... "Regular" companies you could assess for yourself and if they're "good enough" in terms of their activities and practices, buy shares. You might be compromising somewhat, since most companies will keep some proportion of their assets in interest-bearing accounts. Financially speaking there are some drawbacks to having no cash savings and holdings in a small number of companies, of course. You aren't very diversified and you risk needing the money when the market is low. Commented Aug 14, 2014 at 10:54
  • You may be interested in this article islamtelegraph.com/sharia-finance-comes-to-germany
    – algiogia
    Commented Sep 12, 2014 at 8:15

You can invest in a couple of Sharia-compliant ETFs which are available in Germany and issued by Deutsche Bank (and other financial institutions). For instance, have a look at these ETFs:

DB Sharia ETFs

In addition, Kuveyt Turk Bank aims to become Germany's first Islamic bank offering Sharia-compliant investments (Reuters).


What is not permitted in Islam is the practice of making unethical or immoral monetary loans that unfairly enrich the lender.

Originally, usury meant interest of any kind. A loan may be considered usurious because of excessive or abusive interest rates or other factors.

But In case of financial markets, people borrow money to make money and both parties benefits, and no one is taking advantage of the other.

I may be wrong in interpreting this way, God knows the best.


What is actually a halal investment? Your definition of halal investment is loose and subject to interpretation.

On one hand, nothing is fixed in the financial world. You might get a 10 Year Germany Bund with a fixed coupon rate of 1%, but the real rate of return of this investment is far from fixed. It depends on the market environment, the inflation, etc. (Also, you can trade this investment on the secondary market at any time.) Moreover, the country can default. For example, nothing is "fixed" if you hold the Argentina bonds. You might think a savings account in the bank is a fixed investment. But again, what about inflation? And if you talk with the account holders in Cyprus, you will understand there is no such thing that is "guaranteed to profit a fixed amount each month or year". So, from this point of view, everything is "halal", because nothing is fixed and the risk of losing the principal is always there.

On the other hand, if you assume that investing in a government bond and having a savings account is not halal by definition, you will end up with a situation that every investment is not halal. Suppose you invest in a company. What does the company do with your money? Sure, they will use some of your money to buy equipment, hire new people, and so on. But they will always save some money as cash reserves to meet the short-term and emergency funding needs. Those cash reserves are usually in the form of highly liquid investments, such as short-term bonds, money market funds, savings in a bank account, etc. Because those investments are not halal per definition, is your investment in the company still halal?

So in the end, you might just do whatever you want depending on your interpretation.

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    You have a point, but I don't think this is a very helpful answer. In a religious context, the goal is likely to find a solution that maintains the spirit of the proscription against usury, etc., and also perhaps one that has some level of support from religious authorities. Just constructing a technical argument to justify whatever you want is unlikely to be satisfactory.
    – BrenBarn
    Commented Aug 13, 2014 at 18:24
  • It's so complicated to explain. I guess my question then is targeted to Muslim users or those with knowledge in Islamic finance rules.
    – Jack Twain
    Commented Aug 13, 2014 at 22:06
  • This link touches on the subject lightly azzadfund.com/HalalInvesting.aspx
    – Jack Twain
    Commented Aug 13, 2014 at 22:06
  • But your answer is not a helpful answer.
    – Jack Twain
    Commented Aug 13, 2014 at 22:07
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    Although the answer is not helpful to the OP, I think it still may be useful to anyone else considering whether/how to follow the rules. Commented Aug 15, 2014 at 7:43

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