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Islam/Is working in Private Equity Firm allowed


QUESTION: Assalamo alykum warehmatullah

Could you please advice if it is lawful under Islam to work in Private Equity Firm. Below is a brief on the limited knowledge I have about PE firms:

The PE firms raise funds from investors/financial institutions (banks) and invest those funds in companies which are relatively not doing well. They sometimes buy the shares of the companies. When the companies start performing, they sell the shares at a profit.

Jazakallah Khair
Yasmeen Ansari

ANSWER: Bismillahir-Rahmanir-Rahim (In the Name of Allah, Most Gracious, Most Merciful)


Dear Sister,

A good question.

Its important to understand the modus operandi of such firms. Make a check that they are not investing in Riba oriented organizations or those organizations which are involved in those trade which hurts islamic values.

For example - if the firm is investing in forbidden trade (pork-alcohol-lending money on interest-etc) then one should not join them.

However its best you do not touch such companies if its not shariah compliant because then they will be open to invest and borrow from anywhere and everywhere which may or may note be complying with islamic values.

i see your phone number below your name - do you want to talk ?


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( Note: I am not a mufti, if you are in doubt or want 100% accuracy please verify the above hadith with an authentic personality. However I have not altered any hadith and presented it as and how it was found. May Allah forgive our mistakes from time to time...ameen.)

---------- FOLLOW-UP ----------

QUESTION: Jazakallah Khair for your reply brother.

Brother you said that we should avoid companies which are not shariah compliant. However, I live in India and here it is difficult to find such companies. The firm that I am working in right now, may also have borrowed money on riba for expanding business or for some other purpose at some point of time. A scholar once mentioned that if you know that the main source of revenue for the company is not riba, then you can work. Can you please advice in light of the current situation please.

May Allah bless you with good immensely in this world and the hereafter Insha Allah

Please ignore the mobile number, I mentioned it accidentally.

Dear Sister,
I understand the situation is complicated. What are the different options in hand ? If you dont work for this company, then what are the other companies that you can work for in order to earn your daily bread.
Awaiting reply.


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Preaching Islam since childhood, and further gained commanding knowledge of almost every affairs of the religion though authentic books and attending lectures by notable scholars of Islam

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