Profits from resorts that serve alcohol are haram, explains Dr Zakir Naik

“In Islamic finance, you cannot involve in any business as the owner of that business if it is even one percent a haram activity,” Dr Naik said.

“As a main partner you cannot be involved. If you are investing as a pool and you are a small partner, then a little bit is permitted, but as a 100% owner I cannot say ‘fine, I will have a hotel that will allow alcohol, and that money I will give to charity.’ You cannot say that. Because you are involved in haram activity.”

It was permitted, Dr Naik explained, to invest in part in a mutual fund where a haram activity might be a small percentage of the investment, as “then I can give the small amount to charity, because I have no major say in the business. But if I am a bigger shareholder, I cannot allow even 0.1% of haram activity to take place.”