Halal investing 101: A refresher to remind yourself of the basics

We all need a reminder every now and then about how halal investing works. In a nutshell, halal investing touches on the following four issue areas: Refraining from the giving and taking of riba Avoiding speculation (gharar) and uncertainty (maysir) Not transacting in the buying and selling of debt Abstaining from investing in companies with unethical lines of business Together, those four areas, derived from the Qur’an and Sunnah, are the primary rules of halal investing. Remember and use them to judge the soundness of your financial transactions. Often, that means referring your situation to a scholar with the appropriate training to determine the Islamic validity of contracts. The DIY (do it yourself) approaching to investing is full of problems, most of which I have seen firsthand. This brings us to the “who” of halal investing. Just as you would go to a lawyer to get an important contract review, so too should you go to a specialist when it comes to your financial affairs. Even if you don’t have a personal scholar you lean on for such things, there are individuals out there who are accredited and able to share the fruits of their jurisprudence. For many, that means

February 7, 2019 No Comments

Five things that make Azzad unique

At Azzad, we believe that an investment has moral as well as financial implications. “Do no mischief on the earth after it has been set in order; but call on Him with fear and longing (in your hearts) for the Mercy of Allah is (always) near to those who good.” (Surah Al-A’raf, Ayah 56) To invest in a company that engages in Islamically impermissible activities is harmful to the investor because s/he profits from haram activities through dividend or interest income. It is harmful to society as a whole because what we buy is an expression of our ethics and moral worldview. To support unjust, economically exploitative enterprises helps to perpetuate, either in practice or in spirit, actions that are corrosive to the soul and society. As such, we do not cut corners when it comes to Shariah compliance, embracing both the letter and the spirit of the law. Azzad’s adherence to internationally accepted guidelines for Islamic investing is unrivaled. The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) serves as the backbone of our Shariah compliance process. This means rigorous screening that involves data feeds on company business activities from two internationally known vendors, Thomson Reuters and MSCI.

February 6, 2019 No Comments

Azzad participates in AAOIFI-World Bank conference on Islamic banking

MANAMA, Bahrain, Dec. 8, 2015 — A representative of Azzad Asset Management joined senior representatives from central banks, financial institutions, and regulators in the Kingdom of Bahrain for the annual Islamic banking and finance conference organized by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Held in conjunction with the World Bank and under the auspices of the Central Bank of Bahrain, the Dec. 6-7 event included talks on strategies to increase access to Islamic finance as well as the application of global standards in the sukuk (Islamic bond) industry. “With its focus on economic justice and inclusion, Islamic finance is a powerful force for good in the world,” said AAOIFI member and Azzad CEO Bashar Qasem, CSAA, who attended the conference. “And through its collaboration with multilateral institutions like the Washington, D.C.-based World Bank, AAOIFI continues to make strides toward the global application of its ethical guidelines and standards.” Mr. Qasem is one of the few Islamic finance professionals in the United States to have earned the Certified Shariah Adviser and Auditor (CSAA) accreditation from AAOIFI. Azzad is an outspoken advocate of the Seven Tenets of Halal Investing, which follow AAOIFI guidelines in screening out stocks of companies in unethical lines of business. In

December 8, 2015 No Comments