What is the ruling on investment certificates?
Since the emergence of banks until present, there has been a difference of opinion among scholars over their legitimacy, practices and activities. Some jurists have prohibited all or most banking transactions while others have maintained their permissibility. For issues where there is a difference of scholarly opinion, it is permissible for one who is afflicted with something controversial, to follow the opinion of any of the scholars who permit it and he does not sin.
Based on the above and in reference to the question, you must know the following:
- Allah forbids usury (riba) and there is a scholarly agreement on its prohibition.
- There is difference of opinion concerning the conception (taswir), legal formulation (takyif) and the ruling for banking.
- It is recommended to remove oneself from controversial issues. Nevertheless, it is permissible to follow the scholars who permit banking. Consequently, you are not blameworthy for dealing in investment certificates.
Allah the Almighty knows best