Development and investment by foreign funds within the State are forbidden. It is also prohibited to grant franchises to foreigners.

The two words: “investment” and: “development” are Western terms. The term investment means that the money itself produces profit, which is by yielding interest. As for the term development, it means to use the money in industry, agriculture or trade, in order to produce profit.

Based upon this understanding, all investment is not allowed, since it is interest and interest is forbidden (Haram). Although the text regarding foreign investment is explained by the rule that it is prohibited to engage in interest with a Harbi, in the same way as a Dhimmi and a Muslim without any difference between them due to the generality of His (swt) words:

“And has forbidden interest (usury).” (TMQ 2:275), and since there is no authentic text which specifies it then it remains general. It cannot be said that the narration:

. » لاَ رِبًا بيََْ الْمُسْلِمِيَ وَأَهْلُ الحَْرْبِ فِي دَارِ الحَْرْبِ «.

“there is no interest (usury) between the Muslims and the enemy in Dar Al-Harb” specifies it since the narration is weak as it is Mursal from Makhul. Shafi’i said in Al-Umm that it is not confirmed and it is not an evidence, and Ibn Muflih said the report is unknown - so it is not suitable as an evidence to prove the permission of interest, and nor does it specify/restrict the verse, and so the verse remains general. Therefore, foreign investment is forbidden in the same way as investment from the subjects (Muslims and Dhimmis) because it is interest and thus it is forbidden.

As for the prohibition of development through foreign funds this is because it leads to Haram in agreement with the rule: “The means to something forbidden is also forbidden”, and the strongest possibility is enough to make something prohibited, so what about when foreign development leads to a confirmed Haram? It is confirmed by the senses and by information whose authenticity is trusted that the use of foreign funds for development in the country is the method to extend the influence of the disbelievers over them, and extending their influence in the land is Haram.