What Is the Verdict on Working as a Software Engineer in an Investment Bank?

In the Name of Allāh, the Ever Merciful, the Bestower of Mercy

Question:

What is the verdict on working as a software engineer in an investment bank? If it’s not permitted, can a person accept a job to work at a bank until they find a more suitable replacement?

Answer:

Firstly, what is the name of this bank? There are some banks that operate in a Sharīʿah compliant fashion, and working within such banks is lawful. However, by and large, the situation as it relates to banks is that they deal in ribā.

“Ribā” is derived from the word “raba” (which means to increase, to grow). Literally, therefore, ribā means increase or growth, but technically, it means usury or interest. In the Sharīʿah, it includes both interest of excess (ribā al-faḍl) and interest on delayed payment (ribā n-nasīʾa).

Any increase or decrease in the amount of the thing exchanged, or one given in cash, and the other on loan or both on loan, constitutes interest. Interest on delayed payment (ribā n-nasīʾa) consists in taking more money than the money actually loaned; the increase charged for the delayed period. For example. one lends $100 to someone for a period of six months on condition the borrower will pay him back $145. The difference of $45 charged for the six month delay constitutes interest. Islām encourages people to help the poor without hope of worldly return or worldly reward for the help, and the system of interest promotes selfishness. This interest (little or much, simple or compound) is categorically unlawful and prohibited, no matter if it is charged on loan taken to meet a personal need, or for a commercial purpose.

The ruling regarding working in a non-sharīʿah compliant bank (even if you are working within it as a software engineer) is that it is impermissible due to it involving the cooperation of sin and transgression, with respect to which Allāh (سبحانه وتعالىٰ‎) says:

And cooperate in righteousness and piety, but do not cooperate in sin and aggression. And fear Allāh; indeed, Allāh is severe in penalty. 

Sūrat al-Māʾidah, 5:2.

It’s authentically transmitted from the Messenger (صلى الله عليه وسلم) that he cursed the person who accepts ribā, and the person who gives it, the person who writes it, and its witnesses, and he said: 

.هُمْ سَوَاءٌ

They are the same (in sin).

Saḥīh Muslim 1598.

As such, it is not permissible for them to work within institutions that deal with ribā, even if it’s for a small amount of time until they find other work. They should make tawakkul in Allāh (عز وجل); trust in Allāh (عز وجل); make duʿāʾ, and take the means of finding another job, In shāʾ Allāh, and Allāh (سبحانه وتعالىٰ‎) will find a way out for that person.

Allāh (عز وجل) said: 

Whosoever fears Allāh and keeps his duty to Him, Allāh will make a way for him to get out (from every difficulty), and Allāh will provide for him in ways he never could imagine.

Sūrat aṭ-Ṭalāq, 65:2-3.

And Allāh knows best. 

— Answered by Abū Dilāra Naief al-ʿAydarūs.