The Practical Islamic Finance Podcast

No Fixed Income in Islam - The Truth Revealed

July 15, 2023 Rakaan Kayali
The Practical Islamic Finance Podcast
No Fixed Income in Islam - The Truth Revealed
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No Fixed Income in Islam - The Truth Revealed


Discover the truth about Islamic fixed income in this eye-opening video! If you've ever wondered about the authenticity of products claiming to offer Sharia-compliant fixed income, this video is a must-watch. Join us as we delve into the principles of halal investing and uncover the flaws in so-called Islamic fixed income. By the end of this video, you'll realize why it's crucial to understand the concept of profit and loss sharing in Islamic finance.

We begin by exploring the fundamental idea behind halal investing, which centers on profit and loss sharing. Unlike non-halal investments that involve interest-bearing loans, halal investing requires that your returns reflect the actual outcomes of the business activity you're involved in. We use the example of investing in a pizza shop to illustrate the stark contrast between halal and non-halal approaches.

Next, we tackle the topic of Sukuk, often advertised as an Islamic alternative to bonds. While Sukuk theoretically offers time-bound ownership shares of assets and a share in the generated cash flows, we uncover some concerning realities. The idea of fixed income within Sukuk contradicts the nature of real business outcomes, where results are uncertain. We analyze major Sukuk funds and expose violations of Sharia principles, including profiting off of debt, which is clearly considered riba (usury) in Islam.

Moreover, we delve into the misrepresentation of profit-sharing arrangements in Sukuk. We examine the payment structures and terminology used by Franklin Global Sukuk Fund and GFH-Sukuk-Fund, highlighting red flags and inconsistencies. These findings cast doubt on the authenticity of the profit-sharing claims made by these funds.

Throughout the video, we emphasize the importance of avoiding products that exploit linguistic loopholes to attract Muslim investors. By understanding the flaws and potential pitfalls of Islamic fixed income, you can make informed investment decisions and protect your wealth in accordance with Islamic teachings.

Join the debate and gain invaluable knowledge by subscribing to our channel and signing up for our newsletter. Stay informed about the latest developments and receive an updated comparison of major halal investing funds. Together, we can navigate the complexities of halal investing and ensure our financial practices align with Islamic principles.

Remember, if you want your investments to comply with Islamic teachings, you must be ready to engage in genuine business activities and bear your fair share of risks. Like and subscribe for more enlightening content. May peace be upon you.


Intro 0:00
The Idea of Halal Investing 1:09
Sukuk 3:13
Two types of loans 7:35



Our podcast is about helping people build wealth in an ethical way. We cover a broad range of topics including stock and crypto investing, product reviews, and general financial well-being.


Anything you hear in this video is an opinion. It is not personalized financial advice. Make sure you do your own due diligence before making any investment decisions.

The Idea of Halal Investing
Two types of loans