{"id":6839,"date":"2024-07-10T07:44:10","date_gmt":"2024-07-10T07:44:10","guid":{"rendered":"https:\/\/al-mawrid.org\/questions-en\/2024\/07\/10\/investment-in-the-so-called-islamic-banks\/"},"modified":"2025-11-16T21:49:14","modified_gmt":"2025-11-16T16:49:14","slug":"investment-in-the-so-called-islamic-banks","status":"publish","type":"post","link":"https:\/\/al-mawrid.org\/questions-en\/investment-in-the-so-called-islamic-banks\/","title":{"rendered":"Investment In The So-called Islamic Banks"},"content":{"rendered":"<h3>Question<\/h3>\n<p>I have fifty million rupees deposited in Meezan Bank for seven years. My questions to Mr Javeed Ahmed Ghamidi follow:<\/p>\n<div>a.  Is this bank really working as per Shar\u012b\u2018ah? They do not give fixed  profit and claim that they do not invest our money in un-Islamic trades.  <\/div>\n<p>b. Do I have to pay the zakah on the original amount deposited and on the profit? Bank deducts 10% tax on my profit each month. <\/p>\n<h3>Answer<\/h3>\n<p>What Islamic banks earn for you comes from primarily two sources: leasing and <em>murabahah<\/em>. While leasing is right from the Shari&#8217;ah point of view, <em>murabahah<\/em> is not. Therefore, if you get a return from an Islamic bank, half of the income is okay and half of it is not. <\/p>\n<div>If  you have done an investment which bears returns to you, zakah has to be  paid on the returns and not the original investment. Therefore, you  have to pay <em>zakah<\/em> at the rate of ten percent on whatever returns you receive as and when they occur.<\/div>\n<p>If the bank is already deducting 10% from your profit as tax, you don&#8217;t have to pay any more <em>zakah<\/em> on it.<\/p>\n<p><strong>Answered by:<\/strong> Dr. Khalid Zaheer<\/p>\n<p><strong>Date:<\/strong> 2015-03-05<\/p>\n<button class=\"simplefavorite-button\" data-postid=\"6839\" data-siteid=\"1\" data-groupid=\"1\" data-favoritecount=\"0\" style=\"\">Favorite <i class=\"sf-icon-star-empty\"><\/i><\/button>","protected":false},"excerpt":{"rendered":"<p>I have fifty million rupees deposited in Meezan Bank for seven years. My questions to Mr Javeed Ahmed Ghamidi follow:<\/p>\n<div>a.  Is this bank really working as per Shar\u012b\u2018ah? They do not give fixed  profit and claim that they do not invest our money in un-Islamic trades.  <\/div>\n<p>b. Do I have to pay the zakah on the original amount deposited and on the profit? Bank deducts 10% tax on my profit each month. <\/p>\n","protected":false},"author":7,"featured_media":14147,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1169],"tags":[1171,1170,1172,1233,1481],"class_list":["post-6839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-issues","tag-banks","tag-islamic-banking","tag-islamic-banks","tag-zakah","tag-zakah-on-investment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Investment In The So-called Islamic Banks - Al-Mawrid Queries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/al-mawrid.org\/questions-en\/investment-in-the-so-called-islamic-banks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Investment In The So-called Islamic Banks - Al-Mawrid Queries\" \/>\n<meta property=\"og:description\" content=\"I have fifty million rupees deposited in Meezan Bank for seven years. My questions to Mr Javeed Ahmed Ghamidi follow:a. Is this bank really working as per Shar\u012b\u2018ah? They do not give fixed profit and claim that they do not invest our money in un-Islamic trades. b. Do I have to pay the zakah on the original amount deposited and on the profit? 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Then how do we know that our money has been used in leasing\u2026","rel":"","context":"In &quot;Economic Issues&quot;","block_context":{"text":"Economic Issues","link":"https:\/\/al-mawrid.org\/questions-en\/category\/economic-issues\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":5834,"url":"https:\/\/al-mawrid.org\/questions-en\/ushur-on-land-resources\/","url_meta":{"origin":6839,"position":1},"title":"Ushur On Land Resources","author":"admin","date":"July 10, 2024","format":false,"excerpt":"In Islam we have Ushur for produce from agriculture and also we have a concept of zakat on wealth. My question is about the status of land in zakat. What is the Islamic viewpoint on zakat on land. My question is about two kinds of land (1) Land which is\u2026","rel":"","context":"In &quot;Worship Rituals&quot;","block_context":{"text":"Worship Rituals","link":"https:\/\/al-mawrid.org\/questions-en\/category\/worship-rituals\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":6787,"url":"https:\/\/al-mawrid.org\/questions-en\/islamic-banks-in-pakistan\/","url_meta":{"origin":6839,"position":2},"title":"Islamic Banks In Pakistan","author":"Khalid Zaheer","date":"July 10, 2024","format":false,"excerpt":"There are about six Islamic banks working in Pakistan. Some are Pakistani and rest are of different Islamic countries like Dubai, Abu Dhabi, Bahrain, Saudi etc. they tell that their business is looking after by a board of ulema and their business is all Islamic. They announce their profit every\u2026","rel":"","context":"In &quot;Economic Issues&quot;","block_context":{"text":"Economic Issues","link":"https:\/\/al-mawrid.org\/questions-en\/category\/economic-issues\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":6006,"url":"https:\/\/al-mawrid.org\/questions-en\/zakat-and-the-retired-elderly\/","url_meta":{"origin":6839,"position":3},"title":"Zakat And The Retired Elderly","author":"admin","date":"July 10, 2024","format":false,"excerpt":"My question is about eligibility of Zakat at old age when there is no source of income for retired person. For example my uncle has given Zakat his whole life regularly and completely. Now he is 75. He sold his spare home and then submitted the money in Islamic bank\u2026","rel":"","context":"In &quot;Worship Rituals&quot;","block_context":{"text":"Worship Rituals","link":"https:\/\/al-mawrid.org\/questions-en\/category\/worship-rituals\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":6022,"url":"https:\/\/al-mawrid.org\/questions-en\/obligation-to-pay-zakah\/","url_meta":{"origin":6839,"position":4},"title":"Obligation To Pay Zakah","author":"admin","date":"July 10, 2024","format":false,"excerpt":"I have to ask that if I engage myself in a business, that I sell a piece of land and I get my money (gain or profit) in not more than three months, does it make it necessary for me to pay Zakat out of the gain? What I mean\u2026","rel":"","context":"In &quot;Fundamental Principles&quot;","block_context":{"text":"Fundamental Principles","link":"https:\/\/al-mawrid.org\/questions-en\/category\/fundamental-principles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":6202,"url":"https:\/\/al-mawrid.org\/questions-en\/tax-and-zakah\/","url_meta":{"origin":6839,"position":5},"title":"Tax And Zakah","author":"admin","date":"July 10, 2024","format":false,"excerpt":"On top of the zakat on all our assets, the government imposes tax on the same. What is your view on this - which one is deductable in legal terms?","rel":"","context":"In &quot;Economic Issues&quot;","block_context":{"text":"Economic Issues","link":"https:\/\/al-mawrid.org\/questions-en\/category\/economic-issues\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/al-mawrid.org\/questions-en\/wp-content\/uploads\/2025\/03\/Queries.png?fit=800%2C450&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_shortlink":"https:\/\/wp.me\/pgh6ci-1Mj","_links":{"self":[{"href":"https:\/\/al-mawrid.org\/questions-en\/wp-json\/wp\/v2\/posts\/6839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/al-mawrid.org\/questions-en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/al-mawrid.org\/questions-en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/al-mawrid.org\/questions-en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/al-mawrid.org\/questions-en\/wp-json\/wp\/v2\/comments?post=6839"}],"version-history":[{"count":0,"href":"https:\/\/al-mawrid.org\/questions-en\/wp-json\/wp\/v2\/posts\/6839\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/al-mawrid.org\/questions-en\/wp-json\/wp\/v2\/media\/14147"}],"wp:attachment":[{"href":"https:\/\/al-mawrid.org\/questions-en\/wp-json\/wp\/v2\/media?parent=6839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/al-mawrid.org\/questions-en\/wp-json\/wp\/v2\/categories?post=6839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/al-mawrid.org\/questions-en\/wp-json\/wp\/v2\/tags?post=6839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}