Dr. Hesham Rabie stated that renting gold jewelry from jewelry shops does not pose a religious problem in principle. He explained that manufactured gold jewelry can be treated similarly to ordinary commodities, meaning it can be subject to rental arrangements just like cars or real estate, provided that the contract terms, duration, and value are clearly defined.
He added that renting gold items—such as bracelets, bangles, or wedding rings—is permissible from a religious standpoint as long as the contractual conditions are clear, including the presence of a lessor and a lessee, a specified period, agreed payment, and conditions for compensation in case of damage or loss. He noted that the main objection surrounding this practice is not religious but social, as Egyptian society traditionally views gold as something to be purchased and kept as personal property.
Rabie explained that gold is strongly associated in Egypt with the concept of the “shabka,” the jewelry presented by the groom to the bride during engagement, which is considered part of the dowry. If the engagement is broken before the marriage contract is finalized, the shabka is considered part of the dowry and therefore must be returned to the groom.
He pointed out that the high costs of marriage requirements—especially in some regions where families demand large amounts of gold, sometimes reaching 100 or 150 grams—can complicate the process of marriage and may lead to delays or disputes. He emphasized the importance of simplifying marriage requirements and avoiding turning the bride into a financial burden.
Rabie stressed that the primary criterion for marriage should be the character and moral integrity of the prospective husband rather than his financial capacity, noting that many couples begin their lives with limited means before their financial conditions improve over time.
Regarding gold ownership, he explained that gold jewelry acquired for personal adornment is not subject to zakat (obligatory almsgiving), even if it is not worn regularly, as long as the intention behind purchasing it was personal use rather than investment or trading.
However, he noted that zakat becomes obligatory when gold is acquired with the intention of trading or investment. In such cases, the owner must pay 2.5% annually on the total value of the investment at the end of the lunar year.
Rabie clarified that individuals who simply store gold at home without trading it are not required to pay zakat on it, although voluntary charity remains encouraged as a means of purifying one’s wealth.
He also addressed the issue of gold purity used to calculate zakat, explaining that in Egypt the prevailing reference is 21-karat gold. This standard balances the interests of both the wealthy and the poor: using a lower karat could reduce the amount of zakat paid, while a higher karat could place a heavier financial burden on the wealthy.
He added that silver is no longer widely used as a monetary standard today and therefore no longer fulfills the same economic role it once did. As a result, gold has become the primary benchmark used in zakat calculations.
Turning to modern financial practices, Rabie stated that investing in gold through digital platforms or investment funds can be permissible provided that real gold actually exists behind the investment. He emphasized that transactions must avoid fictitious or speculative trading that lacks a real asset backing.
He explained that reputable investment platforms may require companies to maintain a significant percentage of their assets—often around 90%—as a hedge to protect investors’ rights and manage financial risk.
Rabie warned against dealing with unregulated platforms or companies that promise unusually high returns without legal guarantees or actual gold backing the transactions. In such cases, investors risk losing their money without legal protection.
He further addressed trading systems that rely on leverage, such as certain forms of foreign exchange or gold speculation, stating that these raise serious religious concerns—especially when transactions occur without a real underlying asset or legal safeguards. Such practices, he noted, may also harm the broader economy by encouraging excessive speculation.
Rabie also cautioned against informal arrangements in which individuals leave their gold with a trader in exchange for a fixed monthly return without a documented contract. He stressed that such agreements carry significant risks and advised that any financial transaction should be properly documented or witnessed to ensure protection of rights.
In conclusion, Rabie emphasized that investing in gold differs from simply saving in gold. An investor actively buys and sells gold to generate profit, whereas someone who holds gold for personal use or long-term savings without trading it is not subject to zakat obligations.
He concluded by noting that Islamic rulings on zakat aim to maintain a balance between supporting the poor and avoiding excessive financial burdens on the wealthy, while encouraging voluntary charity for those who wish to contribute more generously to society.
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