Know These 9 Industries that Muslims Must Avoid

9 Industries That Muslims Must Avoid!

Shariah provides guidelines for the nature of the business, with a focus on religious values and social well-being. Following Islamic principles, Muslims can only deal with a company that operates in the accepted (halal) business. Muslims are prohibited from involving in businesses that directly or indirectly deal with riba and prohibited activities, such as the company producing, selling, or offering liquors, pork or engaging in immoral services such as gambling, discos, prostitution, nightclubs, pornography, pubs, and so on.

Scholars in the Islamic organizations and authorities, such as the Organisation of Islamic Cooperation (OIC), Financial Services Authorities of Indonesia (OJK), and Shariah Advisory Council (SAC) of the Securities Commission of Malaysia, have made resolutions and recommendations on the businesses that Muslims should avoid. Particularly in stock investing. Here is the summary of the 9 industries that Muslims must avoid.


1. Institutions that deal with interest

The financial institutions that deal with interest and its forms are against the Shariah principles. The conventional financial institutions that deal with interest include conventional banks, conventional investment and insurance companies. Muslims definitely have to avoid investing in these institutions.

2. Gambling

Games of chance, lotteries, and, in modern times, speculation – all of them are types of gambling. Gambling is impermissible since it is based on chance: if the outcome is favorable, a person will pay a certain amount of money in exchange for a chance to win a larger sum of money. If not, the money paid will be lost, and no value will be created.

3. Alcohol

All transactions related to alcohol such as the production, trade, investment, and consumption of alcohol products are impermissible. The Quran prohibits all “intoxicants” (Ma’idah: 90), including intoxicant drugs. Although there is an argument that it is permissible when it comes to certain types of medicines in the case of necessity, such as strong painkillers, alcohol products that bring harm and contain a substance that makes people lose their minds are prohibited.

4. Adult Entertainment

Modern Fiqh scholars stated that media sectors, including promiscuity and nudity as part of their business model, are against Shariah.

5. Conventional finance and insurance

It is obvious the reason why they are against Shariah; it is because their business model includes paying and receiving interest. Financial products in conventional banks are not Shariah-compliant. It is because a significant portion of their revenue is from interest (riba). The same is true in conventional insurance. According to Shariah, conventional insurance is not allowed because it contains riba, gharar (excessive uncertainty), and maysir (speculation).

6. Weapons

Although there is no strict prohibition on this, it is still a grey area. It is because weapons have a strong relationship with the defense industry. However, the thing is that the weapon companies may not sort out their buyers as to who is buying for defensive purposes and who is not. So, the majority of scholars agree that it is better to avoid this industry.

7. Tobacco

The tobacco industry is also prohibited to invest in. Tobacco has proven to harm people’s lives. Therefore, Islamic scholars have unanimously declared that tobacco use is definitely haram for Muslims.

8. Pork

The manufacture, trade, investment, and consumption of pork and pork-related items such as fat and gelatin are against Shariah. Many non-Muslims are aware of Islam’s prohibition against pork, which is comparable to the prohibition on alcohol.

9. Hospitality and entertainment

Investing in or participating in these industries is not prohibited unless they are engaged in one or more of the following activities: alcohol, pornography, gambling, or porkā€”or any of the prohibited activities according to Shariah. However, many hospitality or entertainment companies might be involved in these activities. Therefore, some Shariah scholars recommend avoiding this industry.

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