To draw up such a contract with the company

Q 1: I invested a sum of money in holding shares in a company that is situated in the Kingdom of Saudi Arabia. I hope you will give me advice regarding the following: 1- Is the revenue I receive from holding the shares lawful and is there any harm in them? 2- Do I have to pay Zakah on the money I invest in holding shares in that company? 3- I want to sell my shares to generate profit, what is the ruling on that? Is there a valid way to sell the shares? 4- Is it better for me to withdraw the money I invested in these shares according to the Hadith: Leave what causes you doubt and turn to what does not cause you doubt. (Part No. 14; Page No. 350

A: If the company in which you hold shares does not deal in Riba (usury), there is no harm in having shares in it and the revenue you receive is lawful. However, it is unlawful to hold shares in any company that deals in Riba. As regards selling the shares, if they are in the form of real estate and not in the form of money, it is permissible to exchange them for money whether the money you will get is equal, or more or less than the value of the shares. However, it is not permissible to sell the shares if they are in the form of money. This is because one of the conditions of the valid exchange of money is that the currencies should be of equal value and should be exchanged in a hand-to-hand transaction. If they are not equal in value, they have to be exchanged in the same sitting, which does not happen when selling shares. Zakah upon shares differs according to the type of shares you hold. If your shares are in the form of money invested in business, Zakah is paid upon the value of the shares along with their profit after one year has passed. However, if your shares are in the form of real estate such as a factory or a building that is offered for rent or so on, Zakah is paid upon the profits after one year has passed while it is in your possession, if they have reached the Nisab (the minimum amount on which Zakah is due). (Part No. 14; Page No. 351) May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.