What is Sharia Investment? Usury Free Investment Guide

Sharia investment is a usury-free investment solution. Get to know what sharia investment is, why it is different, and how to start halal investing according to Islamic principles.

Investment is no longer something exclusive to certain groups. Everyone can start investing, whether to prepare for the future, fund retirement, or just increase passive income. However, for some Muslims, one big concern arises: is the investment halal? Does it contain usury?

Well, this is where sharia investment comes as a solution. This type of investment is designed so that you can grow your money without violating Islamic principles. Come on, let’s discuss it in full and lightly!

Also read: 5 Differences between Sukuk and Bonds. Investors Must Understand

What is Sharia Investment?

In simple terms, sharia investment is the activity of investing capital to gain profits without containing usury, gharar (unclarity), and maisir (speculation/gambling). This means that the entire investment process, from the contract, management, to profit sharing, must follow Islamic law and be supervised by the National Sharia Council (DSN-MUI).

Some of the main principles in sharia investment include:

• Mudharabah: profit sharing system between capital owners and managers.
• Musharakah: capital cooperation from two or more parties.
• Ijarah: rental contract.
• Wakalah bil Ujrah: delegation of authority in exchange for services.

This principle emphasizes fairness, transparency and balanced risk sharing. So you are not only financially secure, but also spiritually calm.

Legal Basis & Sharia Investment Fatwa

Sharia investment in Indonesia has a strong legal basis. Financial Services Authority (OJK) and DSN-MUI has regulated various fatwas so that the sharia financial system runs transparently and in accordance with sharia.

Some important regulations you need to know:

1. DSN-MUI Fatwa No.20/DSN-MUI/IX/2001 – Guidelines for implementing sharia mutual funds.
2. Fatwa No.40/DSN-MUI/IX/2003 – Sharia principles in the capital market.
3. Fatwa No.80/DSN-MUI/III/2011 – Sharia securities trading mechanism on the Stock Exchange.
4. POJK No. 8 of 2025 – Regulate the List of Sharia Securities and Foreign Sharia Securities with updated financial criteria (maximum interest debt limit of 33% and non-halal income below 5%).
5. Latest DSN-MUI Fatwa 2025 – Regulates Sharia Gold ETF, Syirkah Milk Mutanaqishah, and Sharia Pension Program.

With regulations that are continuously updated, you don’t need to worry. The world of sharia investment is now increasingly trusted and modern.

Also read: Ijarah: Definition, Examples and Application in Sharia Economics

Investment Conditions Declared Sharia

To be called a sharia investment, an investment product must meet several main requirements:

1. Halal Investment Objects
   The business being run must be free from haram elements such as alcohol, cigarettes, gambling, usury, pornography, or the like.
2. There is Clarity of Contract
   All parties must understand and agree to the contract or agreement used. For example, a mudharabah agreement for profit sharing or ijarah for renting.
3. Profit Cleanup (Cleanup)
   If there are profits accidentally obtained from non-halal sources, they must be channeled to social activities or zakat.
4. Supervised by the Sharia Supervisory Board (DPS)
   Every sharia financial institution must have a DPS to ensure all investment activities remain in accordance with Islamic principles.

Differences between Sharia and Conventional Investments

Aspect	Sharia Investment	Conventional Investment
Basic Principles	Based on Islamic law, it is free from usury, maisir and gharar	Based on general economic laws
Source of Profit	Profit sharing (ratio), buying and selling margin, or rental	Interest, capital gains, dividends
Supervision	There is a Sharia Supervisory Board (DPS)	There is no sharia supervision
Risk	Divided fairly between capital owners and managers	Covered by certain parties
Type of business	Only halal business	Can include non-halal businesses

👉 In conclusion:
Sharia investment is not only about “not usury”, but also about transparency, fairness and social responsibility.

Also read: Understanding SBSB (State Sharia Securities) and how to buy it

Popular Types of Sharia Investments

Now, sharia investment options are numerous and easily accessible, both through banks, fintech applications and the capital market. Here are some of the most popular forms of sharia investment in Indonesia:

1. Sharia Mutual Funds

You simply deposit funds to an investment manager who will place them in a halal portfolio such as sharia shares or sukuk. Suitable for beginners to start investing with small capital.

2. Sharia shares

Shares that are included in the Sharia Securities List (DES) have gone through strict screening. This means you can invest without worrying about violating Islamic principles. Large companies such as Telkom, Unilever, and Indofood are on this list.

3. Sharia Deposits

Same as regular deposits, but without interest. The returns come from profit sharing (ratio) according to the initial agreement.

4. Sukuk (Sharia Bonds)

Debt securities based on ijarah or musyarakah contracts. You get regular returns without usury.

5. Sharia Gold

Investment in physical or digital gold that is sold according to market price and qabdh (handover) agreement. The risk of usury is almost zero.

6. Sharia P2P Lending

Technology-based investment that brings together capital providers and borrowers. Transactions are carried out with sharia contracts such as wakalah bil ujrah or mudharabah muqayyadah.

How to Start Sharia Investing

If you want to start sharia investing, here are the practical steps:

1. Determine Investment Goals
   Is it for education funds, retirement, or long-term savings?
2. Choose an instrument according to your risk profile
   If you are conservative, choose sharia deposits or mutual funds. If you are more aggressive, you can try sharia shares or P2P.
3. Ensure Legality and Sharia Compliance
   Check whether your chosen investment product is included in the Sharia Securities List from the OJK and is supervised by DPS.
4. Use the Official Platform
   Use a platform or application that has been supervised by the OJK and has sharia certification.
5. Monitor and Evaluate Regularly
   Don’t just invest, but also monitor its performance. Make sure it suits your targets and risks.

Also read: Getting to know Sharia KPR: Definition, Types of Contracts, Advantages and Tips for Applying

Sharia Investment Risks

Even though it is usury free, it does not mean it is without risk. Some of the risks of sharia investment include:

• Asset Value Fluctuations: The value of shares or sukuk can fluctuate depending on market conditions.
• Uncertainty of Returns: Due to the profit sharing system, profits depend on business performance.
• Limited Liquidity: Some instruments (such as long-term sukuk) cannot be sold quickly.
• Sharia Compliance Risk: If the institution does not comply with the fatwa, the investment could be disqualified as sharia.

Benefits of Sharia Investment

• Halal and Spiritually Safe
• Transparent and Fair
• Supported by Official Regulations from OJK and DSN-MUI
• Varied and Modern Product Choices
• Improving Literacy and the Economy of the People

Skorlife: Make Your Finances More Ready for Investment

Before starting to invest, first make sure your financial condition is healthy. If not, score life can help you from the start.

• Pint Shoes: Manage all your credit cards in one portal. Check due dates & analyze credit card usage patterns so you can shop wisely.
• Check Credit History: Make sure your credit history is good before starting to invest.
• Credit Application Opportunities: See the chances of your loan or credit application being approved with more confidence.
• Financial management: Get recommendations for paying off arrears and managing your investment budget effectively.

With stable finances and a healthy credit history, you can save and invest more freely, including in sharia investment instruments.

Also read: Getting to know Hedging, Hedging Strategies in the Financial World

Conclusion

Sharia investment is not just a trend, but a real form of a halal, ethical and responsible financial lifestyle. With stronger regulations, more diverse products, and strict supervision from the OJK and DSN-MUI, sharia investment is now an ideal choice for anyone to grow financially without leaving the corridors of religion.

Remember, investment success also depends on personal financial health. So, make sure your financial condition is ready, and to make it easier, score life ready to help you move more wisely and planfully.

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FAQ Regarding Sharia Investment

1. What is meant by sharia investment?

Sharia investment is the activity of investing capital to gain profits which is managed in accordance with Islamic principles and laws. This means that all investment processes, starting from contracts, management, to distribution of profits, must be free from elements of riba (interest), gharar (unclarity), and maisir (gambling).

2. What is the difference between sharia investment and conventional investment?

The main difference lies in the principles and sources of profit.

• Sharia investments are based on Islamic law and use a profit sharing system, not interest.
• Meanwhile, conventional investment is generally interest-oriented and does not pay attention to the halal and haram aspects of the business being run.

Apart from that, sharia investments are always supervised by the Sharia Supervisory Board (DPS) so that they remain in accordance with the DSN-MUI fatwa.

3. What are the risks of sharia investment?

Like other types of investment, sharia investment also has several risks, including:

• Market risk: asset values ​​can fluctuate according to economic conditions.
• Liquidity risk: some products such as sukuk or property cannot be sold quickly.
• Performance risk: investment returns depend on the performance of the business being run.
• Sharia compliance risks: if the management does not comply with the fatwa, it could lose its “shariah” status.

However, all these risks can be minimized with careful analysis and portfolio diversification.

4. Is sharia investment usury?

No. In fact, sharia investments are made to avoid usury. Every profit comes from halal mechanisms such as profit sharing (mudharabah), rent (ijarah), or capital cooperation (musyarakah). There are no interests or practices detrimental to either party. That way, you can grow your money safely, lawfully and ethically.

5. How do you invest in sharia?

The steps are quite easy:

1. Determine your investment goals (short/long term).
2. Choose investment instruments that are halal and supervised by the OJK.
3. Make sure the product is included in the Sharia Securities List (DES).
4. Use an official platform with sharia certification.
5. Monitor your investment performance regularly.

You can also start from a small nominal amount through online sharia mutual funds which are now available on many official applications.

6. What are some examples of sharia investment?

There are many types of sharia investments that you can choose, including:

• Sharia mutual funds
• Sharia shares
• Sharia deposits
• Sukuk (sharia bonds)
• Sharia P2P lending
• Sharia gold investment
• Property with sharia contract

Everything is run based on the principles of transparency, profit sharing and usury free, so you can invest calmly and in accordance with Islamic teachings.