Buying shares in the Kayan company
Question

                Is it permissible to buy shares in the Kayan company?.
Praise be to Allah.
    The Kayan company is active in petrochemical manufacturing 
    which is a permissible kind of activity. Its capital is 15 billion riyals 
    and it does not have any debts at the moment, but it has signed an agreement 
    with a group of banks to obtain financing for 4.8 billion riyals to cover 
    the cost of project building. According to what is mentioned in their 
    prospectus, some of this financing is in the form of loans with interest 
    from riba-based banks, although the larger part of it will be through 
    Islamic investment. 

    This website adopts the opinion that it is haraam to buy 
    shares in companies that deal with haraam, whether borrowing or lending, 
    even if their activities are permissible in general. See the answer to 
    question no. 45929. 

    Among those who have ruled that it is haraam to buy shares in 
    the company mentioned is Dr. Muhammad al-‘Usaymi (may Allaah preserve him) 
    who said: 
and blessings and peace be upon the 
    Messenger of Allaah. 
    
    The activities of this company are in petrochemical 
    manufacturing, which is a permissible activity and is essential to the Saudi 
    economy. I have read the prospectus and it is clear to me that the company 
    does not at the present time have any haraam loans or investments, rather it 
    states that the money it has in the bank is 15 billion riyals in Islamic 
    investments that gives a return of 4.5%. I am well known for having 
    reservations about the way many commercial banks offer Islamic products 
    through “Islamic service counters” in the form of investments that are not 
    based on proper shar’i guidelines, rather they are superficial in many of 
    their operations, especially when the money involved is huge amounts that 
    the available investment products cannot fully absorb. Still, I appreciate 
    such blessed efforts and believe that they are a step in the right 
    direction. But the prospectus has declared the company’s intention to take 
    both interest-based and Islamic loans from commercial banks. Although the 
    prospectus expresses thanks that Islamic banks and local, regional and 
    international banks, in addition to some governmental and semi-governmental 
    bodies, are expected to contribute to the financing of this project, 
    focusing on increasing the share of the Islamic banks in financing, the news 
    mentioned on the website confirms that the company is taking this direction 
    in borrowing and that the financing will not be purely Islamic. 

    Because this prospectus, as far as I am concerned, is a 
    proposal from the company to potential investors, and as it contains what 
    has been mentioned above, I think that it is not right for a Muslim to be a 
    part of this contract or to accept it or appoint someone to act as his agent 
    in such dealings. 

    Based on that, it is not permissible to invest in this 
    company. 

    I would like to take this opportunity to call on the people 
    in charge of this company and others to avoid haraam loans and haraam 
    investments. Islamic alternatives – praise be to Allaah – are available and 
    are sufficient. I would also like to remind them to fear Allaah with regard 
    to that which has been entrusted to them and about which He will ask them on 
    the Day of Resurrection. And Allaah knows best. May Allaah send blessings 
    and peace upon our Prophet Muhammad and all his family and companions. End 
    quote from the shaykh’s website: 


    http://www.halal2.com/ftawaDetail.asp?id=13561
And Allaah knows best.