Jamiat KZNJamiatul Ulama KZN

Is it permissible to purchase MTN Zakhele Shares?

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Business

Question

Would you please clarify if we can purchase shares in the MTN Zakhele BEE offer?

Answer

The Fatwa Department of the Jamiatul Ulama (KZN) has consulted a number of senior Ulama and reputable organizations with regards to the Zakhele shares that MTN is currently offering and has concluded that it is not permissible for Muslims to purchase such shares. This is primarily based on the fact that the funding structure of these shares is interest based. Some Ulama have also voiced reservations against the restrictive clauses governing these shares and that such clauses render the transaction invalid.

And Allah knows best

Answered by
Suhail Tarmahomed (Mufti)
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Fatawa SA is an independent, read-only index of fatawa already published by Jamiatul Ulama KZN. It is not a fatwa service. For your own situation, ask the issuing Darul Ifta directly.