HALAL INVESTMENTOR
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!!! URGENT !!!
Dear all,
I trust this email finds you in good health.
I am a Muslim living in France and passionate about halal investment in its various forms, especially in real estate. I have just graduated from a business school in France and I am looking for a job that will eventually allow me to understand and know how to manage my money and invest it in a halal manner.
I am reaching out to seek your guidance in this matter. I have recently been offered a position as a junior fund management analyst at a renowned real estate investment firm in France.
I am genuinely asking for your help and guidance. Is this job (junior fund manager) a halal one ?
Allow me to elaborate further on the responsibilities associated with the role of an analyst Fund manager offered by the company.
Approximately two-thirds 2/3 to three-quarters 3/4 of my duties entail:
1) Calculating and monitoring the forecasted performance of the funds
2) Monitoring and controlling (valuations, cash flow management, banking ratios) + reporting
The last 1/4 to 1/3 consists of:
3) Help manage and acquire new real estate acquisitions
4) Assist in the real estate investment strategy in coordination with the Asset Manager
It is imperative to note that the organization offering me this position primarily utilizes equity financing for the acquisition of real estate assets. These funds are predominantly sourced from reputable institutions (including corporations, banks, insurance firms, and governmental entities) as well as wealthy individuals (such as family offices). However, a small fraction of the investment capital is supplemented by interest-bearing loans from banks, which raises concerns regarding compliance with halal principles. To give you a more specific idea, a significant portion of the fund, approximately 80% to 90%, is equity-based, while the remaining portion is funded through debt.
To provide more clarity, the funds managed by this company are French SCPIs. The U.S. or U.K. counterpart to the SCPI is a Real Estate Investment Trust (REIT).
Despite this small amount of debt and the tasks of my job, will my work be haram? Please, I seek your genuine advice and clarification on whether my engagement in this role would be deemed permissible according to Islamic principles.
Your insights and guidance on this matter would be immensely appreciated.
Warm regards,
Badr
To contact me : cosmos.badr@gmail.com
Posted : 27/04/2024 3:20 pm
Dear Brother Badr , Walaikum Salam.
Glad to hear your genuine concerns on earning the halal way . May Allah guide you and make it easy for you.
To answer your question , first of all I am NOT a mufti and so I'm neither qualified not authorized to give a fatwa for your specific situation. But to provide a layman's perspective with some knowledge of islamic finance, the job responsibility as described seems to be generally not in contravention to islamic sharia principles. (of course nothing in this time and era is 100% clean).
As for the funding part which you described as being funded upto 20% by debt, lets understand it this way. For your earning to be halal the work that you do should not be related to anything that promotes , helps or generates haram income and activity like interest based debt. Secondly the primarily source of the income of the company that you work with should not be from haram sources. Like for example if I work with a bank even in a non-credit function all my actions are towards promoting the haram work of bank and also the salary I receive is from the haram income that the bank generates.
With the limited information about the company detailed specifics, I assume that the primary income of your prospective employer is fee for managing clients funds and debt interest is not the primary source of its income. Therefore I dont see that to be an issue and as your job profile does not entail you to give loan or witness loans or other such acts (although I do understand that a part of it could involve investing funds in some debt instruments as well).
As with most of the things in this modern economic system, things are not black and white but there are some grey elements. As long as the amount of haraam is minimal and is not the core of the activity and your niyah is right I don't think that it is a problem.
But as I said I am not a Mufti it is better to seek professional opinion of a qualified with detailed specifics.
As a practical approach would suggest you to make istikhara and accept the offer and incase you get a negative opinion from a qualified mufti you can always leave the position. Also keep looking for an alternative that is free of all doubts.
I would also suggest you to gain some more information about the sharia aspects of halal or haram income (some of the articles on my website might give you some insight) and form an informed opinion about the subject.
Hope it gives some clarity .
May Allah make it easy for you to choose the right path. Ameen.
Posted : 28/04/2024 5:42 pm
