The short answer
Invest through ownership and partnership, not lending at interest. You can buy real assets, own shares in halal businesses, or put money into a business as a partner, sharing profit by an agreed ratio and sharing the risk of loss. A fixed, guaranteed return on money you "invest" is usually a disguised interest loan.
Allah calls wealth something He "made a means of sustenance for you" 1, and the Sunnah shows money being put to work. In the story of the three men trapped in a cave, one had kept a labourer's unpaid wages, "invested his wages and I got much property thereby", then handed the whole herd to the labourer when he returned 2. Growing wealth honestly, and giving others their full rights, is praised.
Partnership is the model. The Prophet ﷺ let the people of Khaybar farm the land for "half the products of fruits or vegetation" 3: one side provided the asset, the other the work, and they split the actual output by a ratio. Companions also joined each other as partners in trade 4. Scholars build the main halal investment contracts on this:
What turns it into riba is guaranteeing the investor his capital plus a fixed sum. That is a loan with interest, however it is labelled 56. Profit in Islam comes with risk.
Protect the partnership. Many partners "oppress one another, except for those who believe and do righteous deeds" 7, so write the agreement down clearly. The Quran commands writing for deferred debts because it is "more just" and "more likely to prevent doubt" 8, and the same wisdom applies here. Record the capital, roles, profit ratio, how losses are handled, and how to exit.
Other halal options include Islamic funds, screened shares, real estate held for rent, and trade itself.
Wealth is described as something Allah has made a means of sustenance for people.
وَلَا تُؤۡتُواْ ٱلسُّفَهَآءَ أَمۡوَٰلَكُمُ ٱلَّتِي جَعَلَ ٱللَّهُ لَكُمۡ قِيَٰمࣰ ا وَٱرۡزُقُوهُمۡ فِيهَا وَٱكۡسُوهُمۡ وَقُولُواْ لَهُمۡ قَوۡلࣰ ا مَّعۡرُوفࣰ ا ٥
And do not give the weak-minded your property, which Allah has made a means of sustenance for you, but provide for them with it and clothe them and speak to them words of appropriate kindness
A man invested his labourer's wages until they became a herd, then gave it all to the labourer.
Narrated `Abdullah bin `Umar:I heard Allah's Messenger (ﷺ) saying, "Three men from among those who were before you, set out together till they reached a cave at night and entered it. A big rock rolled down the mountain and closed the mouth of the cave. They said (to each other), Nothing could save you from this rock but to invoke Allah by giving reference to the righteous deed which you have done (for Allah's sake only).' So, one of them said, 'O Allah! I had old parents and I never provided my family (wife, children etc.) with milk before them. One day, by chance I was delayed, and I came late (at night) while they had slept. I milked the sheep for them and took the milk to them, but I found them sleeping. I disliked to provide my family with the milk before them. I waited for them and the bowl of milk was in my hand and I kept on waiting for them to get up till the day dawned. Then they got up and drank the milk. O Allah! If I did that for Your Sake only, please relieve us from our critical situation caused by this rock.' So, the rock shifted a little but they could not get out." The Prophet (ﷺ) added, "The second man said, 'O Allah! I had a cousin who was the dearest of all people to me and I wanted to have sexual relations with her but she refused. Later she had a hard time in a famine year and she came to me and I gave her one-hundred-and-twenty Dinars on the condition that she would not resist my desire, and she agreed. When I was about to fulfill my desire, she said: It is illegal for you to outrage my chastity except by legitimate marriage. So, I thought it a sin to have sexual intercourse with her and left her though she was the dearest of all the people to me, and also I left the gold I had given her. O Allah! If I did that for Your Sake only, please relieve us from the present calamity.' So, the rock shifted a little more but still they could not get out from there." The Prophet (ﷺ) added, "Then the third man said, 'O Allah! I employed few laborers and I paid them their wages with the exception of one man who did not take his wages and went away. I invested his wages and I got much property thereby. (Then after some time) he came and said to me: O Allah's slave! Pay me my wages. I said to him: All the camels, cows, sheep and slaves you see, are yours. He said: O Allah's slave! Don't mock at me. I said: I am not mocking at you. So, he took all the herd and drove them away and left nothing. O Allah! If I did that for Your Sake only, please relieve us from the present suffering.' So, that rock shifted completely and they got out walking
حَدَّثَنَا أَبُو الْيَمَانِ، أَخْبَرَنَا شُعَيْبٌ، عَنِ الزُّهْرِيِّ، حَدَّثَنِي سَالِمُ بْنُ عَبْدِ اللَّهِ، أَنَّ عَبْدَ اللَّهِ بْنَ عُمَرَ ـ رضى الله عنهما ـ قَالَ سَمِعْتُ رَسُولَ اللَّهِ صلى الله عليه وسلم يَقُولُ " انْطَلَقَ ثَلاَثَةُ رَهْطٍ مِمَّنْ كَانَ قَبْلَكُمْ حَتَّى أَوَوُا الْمَبِيتَ إِلَى غَارٍ فَدَخَلُوهُ، فَانْحَدَرَتْ صَخْرَةٌ مِنَ الْجَبَلِ فَسَدَّتْ عَلَيْهِمُ الْغَارَ فَقَالُوا إِنَّهُ لاَ يُنْجِيكُمْ مِنْ هَذِهِ الصَّخْرَةِ إِلاَّ أَنْ تَدْعُوا اللَّهَ بِصَالِحِ أَعْمَالِكُمْ. فَقَالَ رَجُلٌ مِنْهُمُ اللَّهُمَّ كَانَ لِي أَبَوَانِ شَيْخَانِ كَبِيرَانِ، وَكُنْتُ لاَ أَغْبِقُ قَبْلَهُمَا أَهْلاً وَلاَ مَالاً، فَنَأَى بِي فِي طَلَبِ شَىْءٍ يَوْمًا، فَلَمْ أُرِحْ عَلَيْهِمَا حَتَّى نَامَا، فَحَلَبْتُ لَهُمَا غَبُوقَهُمَا فَوَجَدْتُهُمَا نَائِمَيْنِ وَكَرِهْتُ أَنْ أَغْبِقَ قَبْلَهُمَا أَهْلاً أَوْ مَالاً، فَلَبِثْتُ وَالْقَدَحُ عَلَى يَدَىَّ أَنْتَظِرُ اسْتِيقَاظَهُمَا حَتَّى بَرَقَ الْفَجْرُ، فَاسْتَيْقَظَا فَشَرِبَا غَبُوقَهُمَا، اللَّهُمَّ إِنْ كُنْتُ فَعَلْتُ ذَلِكَ ابْتِغَاءَ وَجْهِكَ فَفَرِّجْ عَنَّا مَا نَحْنُ فِيهِ مِنْ هَذِهِ الصَّخْرَةِ، فَانْفَرَجَتْ شَيْئًا لاَ يَسْتَطِيعُونَ الْخُرُوجَ ". قَالَ النَّبِيُّ صلى الله عليه وسلم " وَقَالَ الآخَرُ اللَّهُمَّ كَانَتْ لِي بِنْتُ عَمٍّ كَانَتْ أَحَبَّ النَّاسِ إِلَىَّ، فَأَرَدْتُهَا عَنْ نَفْسِهَا، فَامْتَنَعَتْ مِنِّي حَتَّى أَلَمَّتْ بِهَا سَنَةٌ مِنَ السِّنِينَ، فَجَاءَتْنِي فَأَعْطَيْتُهَا عِشْرِينَ وَمِائَةَ دِينَارٍ عَلَى أَنْ تُخَلِّيَ بَيْنِي وَبَيْنَ نَفْسِهَا، فَفَعَلَتْ حَتَّى إِذَا قَدَرْتُ عَلَيْهَا قَالَتْ لاَ أُحِلُّ لَكَ أَنْ تَفُضَّ الْخَاتَمَ إِلاَّ بِحَقِّهِ. فَتَحَرَّجْتُ مِنَ الْوُقُوعِ عَلَيْهَا، فَانْصَرَفْتُ عَنْهَا وَهْىَ أَحَبُّ النَّاسِ إِلَىَّ وَتَرَكْتُ الذَّهَبَ الَّذِي أَعْطَيْتُهَا، اللَّهُمَّ إِنْ كُنْتُ فَعَلْتُ ذَلِكَ ابْتِغَاءَ وَجْهِكَ فَافْرُجْ عَنَّا مَا نَحْنُ فِيهِ. فَانْفَرَجَتِ الصَّخْرَةُ، غَيْرَ أَنَّهُمْ لاَ يَسْتَطِيعُونَ الْخُرُوجَ مِنْهَا. قَالَ النَّبِيُّ صلى الله عليه وسلم وَقَالَ الثَّالِثُ اللَّهُمَّ إِنِّي اسْتَأْجَرْتُ أُجَرَاءَ فَأَعْطَيْتُهُمْ أَجْرَهُمْ، غَيْرَ رَجُلٍ وَاحِدٍ تَرَكَ الَّذِي لَهُ وَذَهَبَ فَثَمَّرْتُ أَجْرَهُ حَتَّى كَثُرَتْ مِنْهُ الأَمْوَالُ، فَجَاءَنِي بَعْدَ حِينٍ فَقَالَ يَا عَبْدَ اللَّهِ أَدِّ إِلَىَّ أَجْرِي. فَقُلْتُ لَهُ كُلُّ مَا تَرَى مِنْ أَجْرِكَ مِنَ الإِبِلِ وَالْبَقَرِ وَالْغَنَمِ وَالرَّقِيقِ. فَقَالَ يَا عَبْدَ اللَّهِ لاَ تَسْتَهْزِئْ بِي. فَقُلْتُ إِنِّي لاَ أَسْتَهْزِئُ بِكَ. فَأَخَذَهُ كُلَّهُ فَاسْتَاقَهُ فَلَمْ يَتْرُكْ مِنْهُ شَيْئًا، اللَّهُمَّ فَإِنْ كُنْتُ فَعَلْتُ ذَلِكَ ابْتِغَاءَ وَجْهِكَ فَافْرُجْ عَنَّا مَا نَحْنُ فِيهِ. فَانْفَرَجَتِ الصَّخْرَةُ فَخَرَجُوا يَمْشُونَ ".
The Prophet ﷺ contracted with Khaybar's farmers for half of the produce, sharing output by ratio.
Narrated `Abdullah bin `Umar:The Prophet (ﷺ) concluded a contract with the people of Khaibar to utilize the land on the condition that half the products of fruits or vegetation would be their share. The Prophet (ﷺ) used to give his wives one hundred Wasqs each, eighty Wasqs of dates and twenty Wasqs of barley. (When `Umar became the Caliph) he gave the wives of the Prophet (ﷺ) the option of either having the land and water as their shares, or carrying on the previous practice. Some of them chose the land and some chose the Wasqs, and `Aisha chose the land
حَدَّثَنَا إِبْرَاهِيمُ بْنُ الْمُنْذِرِ، حَدَّثَنَا أَنَسُ بْنُ عِيَاضٍ، عَنْ عُبَيْدِ اللَّهِ، عَنْ نَافِعٍ، أَنَّ عَبْدَ اللَّهِ بْنَ عُمَرَ ـ رضى الله عنهما ـ أَخْبَرَهُ أَنَّ النَّبِيَّ صلى الله عليه وسلم عَامَلَ خَيْبَرَ بِشَطْرِ مَا يَخْرُجُ مِنْهَا مِنْ ثَمَرٍ أَوْ زَرْعٍ، فَكَانَ يُعْطِي أَزْوَاجَهُ مِائَةَ وَسْقٍ ثَمَانُونَ وَسْقَ تَمْرٍ وَعِشْرُونَ وَسْقَ شَعِيرٍ، فَقَسَمَ عُمَرُ خَيْبَرَ، فَخَيَّرَ أَزْوَاجَ النَّبِيِّ صلى الله عليه وسلم أَنْ يُقْطِعَ لَهُنَّ مِنَ الْمَاءِ وَالأَرْضِ، أَوْ يُمْضِيَ لَهُنَّ، فَمِنْهُنَّ مَنِ اخْتَارَ الأَرْضَ وَمِنْهُنَّ مَنِ اخْتَارَ الْوَسْقَ، وَكَانَتْ عَائِشَةُ اخْتَارَتِ الأَرْضَ.
Companions asked a man to be their partner in his trading.
Narrated `Abdullah bin Hisham:that his mother Zainab bint Humaid took him to the Prophet (ﷺ) and said, "O Allah's Messenger (ﷺ)! Take the pledge of allegiance from him." But he said, "He is still too young for the pledge," and passed his hand on his (i.e. `Abdullah's) head and invoked for Allah's blessing for him. Zuhra bin Ma`bad stated that he used to go with his grandfather, `Abdullah bin Hisham, to the market to buy foodstuff. Ibn `Umar and Ibn Az-Zubair would meet him and say to him, "Be our partner, as the Prophet (ﷺ) invoked Allah to bless you." So, he would be their partner, and very often he would win a camel's load and send it home
حَدَّثَنَا أَصْبَغُ بْنُ الْفَرَجِ، قَالَ أَخْبَرَنِي عَبْدُ اللَّهِ بْنُ وَهْبٍ، قَالَ أَخْبَرَنِي سَعِيدٌ، عَنْ زُهْرَةَ بْنِ مَعْبَدٍ، عَنْ جَدِّهِ عَبْدِ اللَّهِ بْنِ هِشَامٍ ـ وَكَانَ قَدْ أَدْرَكَ النَّبِيَّ صلى الله عليه وسلم ـ وَذَهَبَتْ بِهِ أُمُّهُ زَيْنَبُ بِنْتُ حُمَيْدٍ إِلَى رَسُولِ اللَّهِ صلى الله عليه وسلم فَقَالَتْ يَا رَسُولَ اللَّهِ بَايِعْهُ. فَقَالَ " هُوَ صَغِيرٌ ". فَمَسَحَ رَأْسَهُ وَدَعَا لَهُ. وَعَنْ زُهْرَةَ بْنِ مَعْبَدٍ، أَنَّهُ كَانَ يَخْرُجُ بِهِ جَدُّهُ عَبْدُ اللَّهِ بْنُ هِشَامٍ إِلَى السُّوقِ فَيَشْتَرِي الطَّعَامَ فَيَلْقَاهُ ابْنُ عُمَرَ وَابْنُ الزُّبَيْرِ ـ رضى الله عنهم ـ فَيَقُولاَنِ لَهُ أَشْرِكْنَا، فَإِنَّ النَّبِيَّ صلى الله عليه وسلم قَدْ دَعَا لَكَ بِالْبَرَكَةِ فَيَشْرَكُهُمْ، فَرُبَّمَا أَصَابَ الرَّاحِلَةَ كَمَا هِيَ، فَيَبْعَثُ بِهَا إِلَى الْمَنْزِلِ.
Allah permitted trade and forbade interest.
ٱلَّذِينَ يَأۡكُلُونَ ٱلرِّبَوٰاْ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِي يَتَخَبَّطُهُ ٱلشَّيۡطَٰنُ مِنَ ٱلۡمَسِّۚ ذَٰلِكَ بِأَنَّهُمۡ قَالُوٓاْ إِنَّمَا ٱلۡبَيۡعُ مِثۡلُ ٱلرِّبَوٰاْۗ وَأَحَلَّ ٱللَّهُ ٱلۡبَيۡعَ وَحَرَّمَ ٱلرِّبَوٰاْۚ فَمَن جَآءَهُۥ مَوۡعِظَةࣱ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمۡرُهُۥٓ إِلَى ٱللَّهِۖ وَمَنۡ عَادَ فَأُوْلَٰٓئِكَ أَصۡحَٰبُ ٱلنَّارِۖ هُمۡ فِيهَا خَٰلِدُونَ ٢٧٥
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein
The taker and payer of interest are cursed.
Jabir said that Allah's Messenger (ﷺ) cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said:They are all equal
حَدَّثَنَا مُحَمَّدُ بْنُ الصَّبَّاحِ، وَزُهَيْرُ بْنُ حَرْبٍ، وَعُثْمَانُ بْنُ أَبِي شَيْبَةَ، قَالُوا حَدَّثَنَا هُشَيْمٌ، أَخْبَرَنَا أَبُو الزُّبَيْرِ، عَنْ جَابِرٍ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِ وَقَالَ هُمْ سَوَاءٌ .
Many partners wrong one another, except those who believe and do good.
قَالَ لَقَدۡ ظَلَمَكَ بِسُؤَالِ نَعۡجَتِكَ إِلَىٰ نِعَاجِهِۦۖ وَإِنَّ كَثِيرࣰ ا مِّنَ ٱلۡخُلَطَآءِ لَيَبۡغِي بَعۡضُهُمۡ عَلَىٰ بَعۡضٍ إِلَّا ٱلَّذِينَ ءَامَنُواْ وَعَمِلُواْ ٱلصَّٰلِحَٰتِ وَقَلِيلࣱ مَّا هُمۡۗ وَظَنَّ دَاوُۥدُ أَنَّمَا فَتَنَّٰهُ فَٱسۡتَغۡفَرَ رَبَّهُۥ وَخَرَّۤ رَاكِعࣰ اۤ وَأَنَابَ۩ ٢٤
[David] said, "He has certainly wronged you in demanding your ewe [in addition] to his ewes. And indeed, many associates oppress one another, except for those who believe and do righteous deeds - and few are they." And David became certain that We had tried him, and he asked forgiveness of his Lord and fell down bowing [in prostration] and turned in repentance [to Allah]
Deferred debts are written down, because this is more just and prevents doubt.
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوٓاْ إِذَا تَدَايَنتُم بِدَيۡنٍ إِلَىٰٓ أَجَلࣲ مُّسَمࣰّ ى فَٱكۡتُبُوهُۚ وَلۡيَكۡتُب بَّيۡنَكُمۡ كَاتِبُۢ بِٱلۡعَدۡلِۚ وَلَا يَأۡبَ كَاتِبٌ أَن يَكۡتُبَ كَمَا عَلَّمَهُ ٱللَّهُۚ فَلۡيَكۡتُبۡ وَلۡيُمۡلِلِ ٱلَّذِي عَلَيۡهِ ٱلۡحَقُّ وَلۡيَتَّقِ ٱللَّهَ رَبَّهُۥ وَلَا يَبۡخَسۡ مِنۡهُ شَيۡـࣰٔ اۚ فَإِن كَانَ ٱلَّذِي عَلَيۡهِ ٱلۡحَقُّ سَفِيهًا أَوۡ ضَعِيفًا أَوۡ لَا يَسۡتَطِيعُ أَن يُمِلَّ هُوَ فَلۡيُمۡلِلۡ وَلِيُّهُۥ بِٱلۡعَدۡلِۚ وَٱسۡتَشۡهِدُواْ شَهِيدَيۡنِ مِن رِّجَالِكُمۡۖ فَإِن لَّمۡ يَكُونَا رَجُلَيۡنِ فَرَجُلࣱ وَٱمۡرَأَتَانِ مِمَّن تَرۡضَوۡنَ مِنَ ٱلشُّهَدَآءِ أَن تَضِلَّ إِحۡدَىٰهُمَا فَتُذَكِّرَ إِحۡدَىٰهُمَا ٱلۡأُخۡرَىٰۚ وَلَا يَأۡبَ ٱلشُّهَدَآءُ إِذَا مَا دُعُواْۚ وَلَا تَسۡـَٔمُوٓاْ أَن تَكۡتُبُوهُ صَغِيرًا أَوۡ كَبِيرًا إِلَىٰٓ أَجَلِهِۦۚ ذَٰلِكُمۡ أَقۡسَطُ عِندَ ٱللَّهِ وَأَقۡوَمُ لِلشَّهَٰدَةِ وَأَدۡنَىٰٓ أَلَّا تَرۡتَابُوٓاْ إِلَّآ أَن تَكُونَ تِجَٰرَةً حَاضِرَةࣰ تُدِيرُونَهَا بَيۡنَكُمۡ فَلَيۡسَ عَلَيۡكُمۡ جُنَاحٌ أَلَّا تَكۡتُبُوهَاۗ وَأَشۡهِدُوٓاْ إِذَا تَبَايَعۡتُمۡۚ وَلَا يُضَآرَّ كَاتِبࣱ وَلَا شَهِيدࣱۚ وَإِن تَفۡعَلُواْ فَإِنَّهُۥ فُسُوقُۢ بِكُمۡۗ وَٱتَّقُواْ ٱللَّهَۖ وَيُعَلِّمُكُمُ ٱللَّهُۗ وَٱللَّهُ بِكُلِّ شَيۡءٍ عَلِيمࣱ ٢٨٢
O you who have believed, when you contract a debt for a specified term, write it down. And let a scribe write [it] between you in justice. Let no scribe refuse to write as Allah has taught him. So let him write and let the one who has the obligation dictate. And let him fear Allah, his Lord, and not leave anything out of it. But if the one who has the obligation is of limited understanding or weak or unable to dictate himself, then let his guardian dictate in justice. And bring to witness two witnesses from among your men. And if there are not two men [available], then a man and two women from those whom you accept as witnesses - so that if one of the women errs, then the other can remind her. And let not the witnesses refuse when they are called upon. And do not be [too] weary to write it, whether it is small or large, for its [specified] term. That is more just in the sight of Allah and stronger as evidence and more likely to prevent doubt between you, except when it is an immediate transaction which you conduct among yourselves. For [then] there is no blame upon you if you do not write it. And take witnesses when you conclude a contract. Let no scribe be harmed or any witness. For if you do so, indeed, it is [grave] disobedience in you. And fear Allah. And Allah teaches you. And Allah is Knowing of all things
This answer was compiled with the help of AI, using only the verified texts shown here. Every reference links to its source. If you find a mistake, please report it. Updated 2026-09-24