Why are tech companies sharia-complaint?

What about tech companies make them an easy win for halal investing?

I think a huge part of it is that tech companies have just been the best performers over the last decade by far. They’ve offered fantastic growth but without much risk - especially big tech

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Another reason is that I think people are just so inherently familiar with tech. We like to invest in what we know well - in fact I believe Warren Buffet tells advises to invest in what you know because it usually leads to more informed decisions. We use Google, Microsoft, Apple, etc. on a daily basis

I do also wonder if growth stocks in general, which covers a lot of tech, are generally more likely to be Halal due to perhaps less focus on debt or interest based activities

For one, As opposed to finance heavy companies, there isn’t as much issue with riba

automation also likely plays a significant role- as the result there’s more demand for tech stocks, meaning their values increase rapidly

transparency probably also has another factor to play: it’s easier to know that a company is Halal to invest in if their functions are easier to be informed in.

Yeah I think one of the big aattractive things about tech is that a lot of them are heavily software based. The beauty of software is that it’s not as dependent on external factors. It will just continue generating money. Unlike say other businesses that are tied to commodity prices (e.g. mining stocks, oil stocks etc.) or performance of staff etc.

Though whats fascinating is that at least according to the Zoya halal screening app, most of the big tech (FAANG) stocks are actually “Questionable” and not outright halal. Perhaps because of their size thus increasing their likelihood of debt and also how entrenched they are with unethical government contracts

How are they able to infer government involvement?

And what does ‘unethical government contract’ mean?

Through publicly reported or leaked details regarding contracts with the government

For example, the employee revolt that occurred at Google a few years ago when the company had signed a contract with the US government to improve the technology on drones.

These drones are often deployed on Muslim-heavy lands and directly or indirectly lead to killing

This was an interesting case at Google because they didn’t have prior examples of military contracts

Microsoft is another example. They’ve been working on military and government contracts for a long time. Most recently them deploying the use of their Augmented Reality headset on the battlefield to augment the capabilities of soldiers

Cause the nature of what they do isn’t haram.

Most are halal because their purpose isn’t to do haram eg serve alcohol. But not all are halal, for example Amazon because they make so much profit they don’t even know what to do with their money. They offer interest based loans - Amazon Lending for Amazon sellers starting businesses

Yep, tech companies are leading right now. With them being so accessible, literally at the tip of your fingers.

I have heard that sharia-compliant businesses have been the best in the recent decade because of how safe and reliable it is. Especially if you are a start-up, you have to do be safe and go with the best way to make money, hence sharia compliancy is the best way forward.

Shariah-compliant businesses is a slow but safe way of making good money. Allah provides barakah and the system makes sense! I would also add, tech companies, in most cases, have extensive research (not to say others don’t) and the way they make money, or their goal, isn’t primarily through non halal transaction but based on service. Which makes enough money as it is. So why gamble ?

yaaa, they provide services that don’t require to go out and venture into unknown and risky territory. I would add, the rate at which muslims are getting into tech is really high and good… that says something!