If you’re a Muslim, you may be wondering whether or not our financing/investments are Halal.

The short answer: We certainly think they are. We wouldn’t offer them if we had any doubt that they weren’t.

The long answer: Unfortunately, most “Islamic” financial institutions rely on an in-house board of Shariah scholars to approve their products. This system is fundamentally flawed. This is because these boards of Shariah scholars are paid by the very financial institutions they are entrusted with regulating! This creates a clear conflict of interest which has led, in our opinion, to many bogus financing products having the term “Islamic” unjustly associated with them simply because the offering company was able to secure a paid-for opinion that said that is was.

We don’t think we need to go this route, especially since the authorization for our product comes from the Quran itself.

Quran 28:27 (Translation by Sahih International)
He said, “Indeed, I wish to wed you one of my two daughters, on [the condition] that you serve me for eight years; but if you complete ten, it will be [as a favor] from you. And I do not wish to put you in difficulty. You will find me, if Allah wills, from among the righteous.”

Quran 28:28 (Translation by Sahih International)
[Moses] said, “That is [established] between me and you. Whichever of the two terms I complete – there is no injustice to me, and Allah, over what we say, is Witness.”

Basically, the Prophet Moses agreed with the father of his bride-to-be that in return for the dowry (financing that he received) he would work for the benefit of the father for eight years in the future.

This is precisely the agreement that we offer our customers with two differences that are advantageous to the customer:

1. The added flexibility of allowing the financed to work wherever they please. Whereas with the father-in-law’s agreement with Moses, Moses worked directly for his father-in-law. It is certainly conceivable for the father-in-law, within the framework of his agreement with Moses, to tell Moses to work wherever he pleased and share with him the fruits of his labor, which is exactly how our product is set up.

2. Rather than sharing %100 of the fruits of one’s labor with their financier, as did Moses with his father in law, only a small percentage of the fruits of one’s labor are shared with BFF.

An unpaid scholar who agrees with our product and has no association with our business is Dr. Imam Achmat Salie.

Dr. Imam Achmat Salie’s academic preparation includes a six-year intensive degree in Islamic Jurisprudence and Arabic, a bachelors in education, a Bachelors in Islamic Studies, an MBA in eCommerce, a doctorate in business (DBA) leadership, a second Ph.D. on Shariah centric hermeneutics. Dr. Imam Salie served six mega mosques and created three smaller centers. He founded and directed Islamic Studies programs at three universities in Michigan. He speaks and understands Arabic and Afrikaans and also understands Flemish and Dutch.

For further explanation of our product and support for its permissibility in Islam, please read the below articles:

Introducing Human Capital Mudarabah

Human Capital Mudarabah in the Quran

Human Capital Mudarabah: Adam buys his first car

Silencing Objections To Human Capital Mudarabah: Correspondence with ‘Scholar’

3 Societal Benefits for using Human Capital Mudarabah

4 Benefits for Investors who use Human Capital Mudarabah (HCM)