Foreign Investment in Muslim Countries: A Doctrinal Study

Abstract

This study aims at clarifying the stance of Islamic jurisprudence regarding the investment of non-Muslims entities in Muslim-countries as the source of some of these investments comes from foreign countries or foreign institutions, which require the existence and residence of non-Muslims in Muslim countries to operate and practice this investment.  The study used the inductive-analytical approach by indicating Scholar's views, discussing and outweighing them. The study concluded that the foreign investment is allowed in Muslim-countries, judging by the permissibility for a non-Muslim to practice trade, sharecropping, etc. permissibility is the origin in transactions, provided that there are benefits returning back to the Muslim-countries and Muslims. Also, the investment should take into consideration to the tenets and rules of Islamic Sharia, without violating the Islamic creed or legality.