Here’s What Islamic Scholar Dr. Zakir Naik Says About Investing in Bitcoin, Crypto and Fintech Stocks

Whether you love him or you dislike him, Dr. Zakir Naik remains a prominent figure in the Muslim world. He has received a lot of criticism as of late especially during his recent visit to Pakistan. But let’s look at what controversial Islamic scholar and medical doctor Zakir Naik thinks about investing in Bitcoin, Ethereum, other crypto-assets, and even Fintech stocks.

What does Dr. Zakir Naik say about investing in stocks? What are Dr. Zakir Naik’s views on transacting with Bitcoin and other cryptocurrencies? How would Dr. Zakir Naik view the recent emergence of Fintech stocks and process of strategically investing through digital investment platforms? What does Dr. Zakir Naik say about the importance of determining whether certain investments are Haram or Halal? Why is it important for Muslims to only invest in Halal initiatives according to Dr. Zakir Naik? Can Dr. Zakir Naik be trusted considering his reputation has taken a hit recently due to his controversial statements?

Dr. Zakir Naik is a well-known Islamic preacher and speaker who addresses a wide range of topics, including financial matters like investing in stocks and cryptocurrencies. Below are his views on various aspects of financial transactions, based on his lectures and writings:

1. Investing in Stocks:

Dr. Zakir Naik has mentioned that investing in stocks is permissible (Halal) in Islam, provided certain conditions are met. Specifically:

• The core business of the company must be Halal. This means it cannot be involved in activities like alcohol production, gambling, or interest-based finance (Riba).
• The company should not have significant earnings from interest-based investments.
• A company’s financial dealings should align with Sharia principles.

Naik emphasizes the need for Muslims to carefully evaluate the nature of a company’s business and its financial activities before investing. He promotes the idea that Muslims should be conscious of both the ethical and religious implications of their investments.

2. Bitcoin and Cryptocurrencies:

Dr. Zakir Naik has expressed concerns about cryptocurrencies such as Bitcoin. His main objections relate to:

• Uncertainty (Gharar): Cryptocurrencies are highly volatile and speculative. In Islam, engaging in transactions that involve excessive uncertainty or speculation is generally discouraged.
• Lack of tangible backing: Many scholars, including Naik, question whether cryptocurrencies have intrinsic value, as they are not backed by physical assets like gold or goods.
• Potential for illegal activity: Bitcoin has been associated with money laundering, illegal transactions, and other unethical uses, which makes it problematic from a Shariah perspective.

Naik has called for caution when it comes to cryptocurrency investment, suggesting that due diligence is essential before making any decision.

3. Fintech Stocks and Digital Investment Platforms:

Dr. Zakir Naik has not made extensive public statements about specific Fintech stocks or digital investment platforms, but based on his general principles:

• If Fintech companies are engaged in permissible (Halal) business activities, their stocks would be considered Halal to invest in.
• However, many Fintech companies work closely with banks and financial institutions involved in interest-based transactions, which would make their stocks questionable from a Shariah perspective.
• For digital investment platforms, as long as they facilitate Halal transactions and do not involve interest or prohibited activities, they may be acceptable for Muslims.

Naik would likely advocate for Muslims to evaluate the business model and financial structure of such companies and platforms before investing, ensuring that they comply with Islamic law.

4. Importance of Determining Haram or Halal in Investments:

Dr. Zakir Naik often stresses the importance of adhering to Islamic principles in all aspects of life, including finance. He emphasizes:

• Investing in Haram businesses (such as those dealing in alcohol, gambling, etc.) is strictly prohibited in Islam.
• Muslims must strive to ensure that their income and wealth are earned through lawful means, as wealth accumulated through impermissible activities is considered impure (Haram).
• Riba (interest) is particularly condemned in Islam, and Naik consistently reminds Muslims to avoid any business dealings involving interest.

5. Why Muslims Should Only Invest in Halal Initiatives:

Dr. Zakir Naik highlights several reasons why it is essential for Muslims to invest only in Halal (permissible) ventures:

• Religious Duty: Observing Halal and avoiding Haram is a fundamental part of a Muslim’s faith. Investing in permissible ventures aligns with Islamic values and ethics.
• Moral Integrity: Islam encourages financial dealings that are just, transparent, and free from exploitation. Halal investments contribute to societal well-being and individual spiritual growth.
• Accountability: Muslims believe they will be held accountable for their actions, including their financial decisions, in the Hereafter. Ensuring investments are Halal is part of preparing for that accountability.

6. Controversy Around Dr. Zakir Naik:

Dr. Zakir Naik’s reputation has come under scrutiny due to various controversial statements that have drawn criticism from some quarters. His views on religious, political, and social matters have led to legal challenges in certain countries, including accusations of hate speech and extremism. However, his supporters argue that he is a credible scholar who speaks on the basis of Islamic teachings and that his statements are often taken out of context.

Whether Dr. Zakir Naik can be trusted largely depends on individual perspectives. Some view him as a reliable source of Islamic knowledge, while others may question his credibility due to his controversial positions. As with any public figure, it is essential to critically evaluate his statements and cross-reference them with other scholarly opinions.

Summary:

Dr. Zakir Naik encourages Muslims to invest only in businesses that adhere to Islamic principles, avoiding Haram activities and ensuring that their income is pure. He expresses caution regarding speculative investments like cryptocurrencies and emphasizes the need to make informed, Sharia-compliant financial decisions. His views are rooted in a desire to align financial practices with Islamic ethics, though his public image has been affected by recent controversies.