Can Serve as an Example: 3 Investment Choices of Prophet Muhammad (PBUH)

Today, a variety of investment instruments are available for the public to choose from, tailored to individual risk profiles. Interestingly, such investment activities have been practised and developed since the time of Prophet Muhammad (PBUH).

The Prophet (PBUH) is not only revered as a spiritual leader and role model for Muslims but also as a highly successful business figure. It is therefore worth exploring the investment strategies he employed.

According to The Rasulullah Way of Business (2021) research, Prophet Muhammad (PBUH) built trust through honesty and integrity, attracting investors.

Following the operation of businesses funded by investors, the Prophet (PBUH) shared profits with stakeholders and pursued passive income through investments.

Livestock

One of the Prophet’s (PBUH) investments was in livestock. He continued his childhood expertise into adulthood, owning dozens of camels. He also owned horses, donkeys, cattle, and sheep.

Land and Property

Beyond livestock, the Prophet (PBUH) invested in land and property. Musaffa’s report states he leased land to Jewish communities under profit-sharing arrangements.

He also leased date palm orchards and land in Khaybar to Jewish tenants, who managed the land and shared profits. This profit-sharing model is known as mudharabah.

The Importance of Charity

A key aspect of the Prophet’s (PBUH) investment approach was charitable giving. Islam teaches that others have a right to one’s wealth, and helping others brings immense spiritual and material rewards.

The Prophet (PBUH) did not hoard his wealth, regularly donating money, clothing, and food.

Ultimately, those wishing to follow the Prophet’s (PBUH) investment path should consider property, land, and livestock, while remembering to give charity.