This has to STOP. According to Datuk Dr. Asyraf Wajdi Dusuki, “Muslims care more about halal food than halal income”. They are more concerned that the slaughtering of the meat should be Shariah-compliant, but are somehow less concerned on the investment types and sources that they channeled their hard-earned money into. But in reality, the Holy Quran has explicitly highlighted on the importance of halal income. This further reiterates the importance of halal investments such as halal real estate.
For example, in Surah Ar-Rum (30:39), “And whatever riba’ you give so that it may increase in the wealth of the people, it does not increase with Allah”. Moving to Surah Al-Imran (3:130), “O those who believe do not eat up riba’ doubled and redoubled.
However over time, as Muslims positively evolve, their awareness on the Islamic teachings also increased. For example, apart from only being concerned about the food they eat – whether it’s halal or not, their religious awareness is now further extended to also include their financial exercises. In the past, a Muslim is not too concerned if their investments are not Shariah compliant, however as more Shariah-compliant investment platforms are established, springing up like mushrooms after the rain and coupled with becoming more religiously inclined, these dynamics have somehow changed.
As real estate investment is on the rise, the blog is trying its best to highlight several important reasons why Muslims should invest in halal real estate.
1.Activities which are Considered to be Sinful under Islamic Laws are Prohibited
As Muslims become more religiously inclined, it is their responsibility to strictly ensure that their investments are only in accordance to Shariah. With the emergence of many halal real estate investment platforms, these can somehow be achieved. For example, in halal real estate investments, certain trades and activities which are considered to be against the Shariah law is prohibited. These include, but are not limited to gambling; the production or sale of alcoholic products; the production or sale of pork products; and conventional financing activities. If a real estate asset is used primarily for haram purposes, for example a casino, office block occupied by a traditional lending institution or prostitution activities, it will not be an acceptable form of investment. Through halal real estate investments, it somehow connotes an opportunity for a Muslim to invest in something permissible and in accordance to the principles of Islam.
2. Rigorous Examination by Shariah Scholars
To ensure that the halal real estate investments are strictly in adherence to the rules of Shariah, it is the duty of the appointed Shariah scholars to practice due diligence at all times, and more importantly to ensure that all activities are within the scope of Shariah. Through these efforts undertaken by the Shariah scholars, this will also ensure that the investments will not be involved in any activities that can potentially cause harm to the investors. The rigorous Shariah examinations will potentially provide more security and a safer form of investments for the investors.
3. Benefits of Halal Real Estate Investments
By developing and investing in halal real estate projects, investors are indirectly helping the economy and community at large. For example, by investing in Ethis Crowd Shariah-compliant real estate crowdfunding platform, investors will make money whilst at the same time create both positive and social impacts. This is because the investment proceeds are used to provide funding for social housing development projects in Indonesia, a country with the largest Muslim population. What can be better than being a part of the helping hand in changing the world for a better place?
Finally, through halal real estate investments, investors are being provided with an opportunity to earn investment proceeds in a halal manner. Furthermore, it also allows investors to be a part of real-estate projects that can benefit the community and economy at large (for example investing in Ethis Crowd real-estate Shariah-compliant crowdfunding platform). There is an unprecedented scope for the real estate sector internationally, and the continued growth of the halal real estate sector is a testament to the fact that halal real-estate investments have thus far been successful.