Muslims making a halal investment

Halal investment, rooted in the ethical principles of Sharia law, offers Muslim investors a financial approach that aligns with their religious beliefs while aiming to grow their wealth. How can you grow your money ethically? In this article, you can find out more about the basics of halal investment, the possibilities for suitable financial investments and strategies for making your money work for you.

What is halal investment?

Halal investment refers to investment in line with the principles of Islamic financewhich are based on Sharia lawIslamic law. In the context of investment, here are some of the key principles of Islamic finance:

  • Prohibition of interest (riba) Interest, or riba, is strictly forbidden in Islamic finance. This means that loans and transactions cannot generate or involve interest. Instead, investments must be based on profit and loss sharing models.
  • Sharing risks and profits Islamic financial transactions must be based on risk and profit sharing models. This means that investments and loans must be structured in such a way that risks and profits are shared equitably between stakeholders.
  • Prohibition of illegal activities Islamic finance prohibits investment in activities considered illicit under Sharia law, such as alcohol, tobacco, gambling and pork-related industries.
  • Ban on speculation (gharar) Excessive or unjustified speculation is prohibited in Islamic finance. Contracts must be clear and transparent, and risks must be identified and shared fairly between the parties.
  • Adherence to ethics Islamic finance encourages ethical and socially responsible business practices. Investments must contribute to the well-being of society and avoid causing undue harm to others.

What financial investments are suitable?

There are a number of financial investment options that comply with the principles of halal investment. And each has its own benefits, risks and considerations. Find out about some of the common options in this second part.


The sukukor Islamic bondsare Sharia-compliant debt instruments. Unlike traditional interest-bearing bonds, they are structured in such a way as to generate returns based on tangible assets or Sharia-compliant projects.
Sukuk issuers are governments, financial institutions or private companies. They raise funds by issuing sukuk, which are then sold to investors.

Islamic investment funds

The Islamic investment funds collect funds from investors and invest them in Sharia-compliant businesses and assets. These funds are managed according to Sharia principles, avoiding prohibited industries and respecting the principles of profit and loss sharing.
Investors share in the profits made by the fund and also bear any losses according to their share of ownership in the fund.

Individual actions

Halal investors can also buy individual shares in listed companies. These must be involved in halal activities and have Sharia-compliant business practices (avoidance of excessive debt and usury, etc.).
Before investing in individual shares, it is important to carry out an in-depth analysis of companies to ensure that they comply with Sharia principles and offer potential for growth and profitability.

Islamic savings accounts

The Islamic savings accounts are offered by Islamic banks and operate according to profit-sharing (Mudarabah) or investment (Wakalah) principles rather than the traditional interest system.
Islamic banks use the funds deposited in these accounts to invest in Sharia-compliant activities, such as financing halal projects and Islamic trade. The profits generated are then shared with the account holders.

Property investment

Halal property investment implies the acquisition of Sharia-compliant property or participation in Islamic property funds.
Real estate transactions must comply with Sharia principles, such as avoiding usury and unfair exploitation. Investors can earn income from renting out property or selling Sharia-compliant properties.

Growing your money ethically

To make your money grow ethically through halal investment, here are a few tips to consider:

  • Understanding the principles of Sharia law Before you start investing, it's essential to understand the principles of Sharia law to determine what is halal (permitted) and what is haram (prohibited).
  • Diversification As with any type of investment, diversification is important. By spreading your money over different types of halal assets, you reduce your exposure to sector- or company-specific risk.
  • In-depth research Before investing in a company, carry out thorough research (activities, financial structure, business practices, compliance history) to ensure that it complies with Sharia principles.
  • Avoid risky practices Avoid speculative or excessively risky practices that could compromise your ethical principles or result in significant financial losses.
  • Remaining patient Halal investment, like any investment, requires patience and discipline. Avoid knee-jerk reactions to market fluctuations and keep a long-term investment horizon.

And who better than experts to help you develop an investment strategy tailored to your financial and ethical objectives? At de Ravel Finance, we believe that a prosperous financial future while remaining in harmony with your ethical values is entirely possible.. So, as part of our personalised management mandate serviceOur team of financial advisers respects each client's requirements, so that they can always make an investment that respects their principles.


In conclusion, halal investment is much more than just a financial strategy: it is a form of investment that incorporates ethical and religious values into wealth management. By following Sharia principles, halal investors can diversify their portfolios and seek attractive returns, but they can also make a positive contribution to society by supporting companies and initiatives that are in line with their convictions.