Data Processing Services: Shariah Compliant or Not?

Data Processing Services: Shariah Compliant or Not?

Question:

Assalamualikum Mufti Sahab,

Need an opinion on a career change.

I am currently working at a conventional bank. My work includes overseeing non-shariah compliant portfolios as well. Therefore, I have been searching for a different job that does not involve Riba. I am discussing a potential open position for a global consumer intelligence company and wanted to gather your opinion on the permissibility of this job

At present, this company collects data from Point of Sales, Big retailers, shoppers etc and supplies this data to the brands. This company has an offshore centre in India that is responsible for processing this data. One portion of its business also deals with alcoholic beverages (the % or proportion is not clear). This means that the alcoholic brands will pay and consume this data and use it to bump up production or rebrand certain things. I am confident that this is a small proportion of business when compared to their overall business which deals with various client categories i have listed below.

I wanted to check whether it’s permissible to work in such a company given our nature of work will be data processing and delivery of such data to the brands.

Website : NIQ - The Full View™ of Consumer Intelligence

Type of clients
1. Consumer Packaged Goods (CPG/FMCG) Manufacturers
•Companies that make everyday products like food, beverages, household items, and personal care.
•Example: Nestlé, Unilever, Procter & Gamble, Coca-Cola, PepsiCo.

2. Retailers & E-commerce Platforms
•Supermarkets, convenience stores, pharmacies, online marketplaces that want to track sales performance and shopper behavior.
•Example: Walmart, Tesco, Carrefour, Amazon, Flipkart, Reliance Retail.

3. Healthcare & Pharma Companies
•Over-the-counter (OTC) drug makers, nutrition and wellness brands, and pharmacies that need insights into consumer health product sales.

4. Financial & Investment Firms
•Banks, private equity, and investment firms use NIQ data to assess market trends and evaluate brands or retail performance before making investment decisions.

5. Media & Advertising Agencies
•Agencies and marketing firms that rely on consumer behavior insights for campaign planning, targeting, and measuring ad effectiveness.

6. Government & Policy Makers
•Occasionally use NIQ data for economic, trade, and consumer spending analysis.

 

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Answer:

 

In the Name of Allah, the Most Gracious, the Most Merciful.

 

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

 

Masha’Allah we are happy to learn of  your zeal and enthusiasm related to earning a lawful Halal Shariah compliant income.

 

Rasulullah salallahu alayhi wasallam said,

طَلَبُ كَسْبِ الْحَلَالِ فَرِيضَةٌ بَعْدَ الْفَرِيضَةِ

 

“Earning of Halal income is an obligation beyond other obligations.”[1]

 

Contextual Juridical Analysis

 

Your question refers.

 

In principle, there are three aspects which are considered before determining the Shari’ah Compliancy of a job profile:

1. The nature of the job profile/description itself.

2. The major source of the funds from which the employees of the company are remunerated.

3. The Shariah compliancy of the underlying terms and conditions of the contractual position between the employee and employer

We understand that the prospective job profile you refer to relates to the provision of certain data services to various corporate clients as espoused in your question.

Data processing is the conversion of raw data into usable information through structured steps such as data collection, preparation, analysis and storage.

There are six stages of data processing:

Data collection: Companies might gather large volumes of data from sources such as Internet of Things (IoT) sensors, social media or third-party providers. Standardizing data management practices in this step can help streamline subsequent data processing tasks.

Data preparation: This step involves data cleaning, validation and standardization to maintain high-quality datasets. ML algorithms powered by Python scripts can detect anomalies, flag missing values and remove duplicate records, improving accuracy for analysis and AI models.

Data input: After curation, raw data is brought into a processing system such as Apache Spark through SQL queries, workflows or batch jobs. By prioritizing data protection during ingestion, businesses can stay compliant, especially in highly regulated environments.

Analysis: Algorithms, parallel processing or multiprocessing can uncover patterns in big data. Integrating AI here can help reduce the need for manual oversight, which speeds up data analysis.

Data output: Stakeholders can visualize data analysis outcomes by using graphs, dashboards and reports. Quick decision-making depends on how easily users can interpret these valuable insights, especially for forecasting or risk management.

Data storage: Processed data is stored in data warehouses, data lakes or cloud computing repositories for later access. Proper data storage practices aligned with regulations such as the General Data Protection Regulation (GDPR) can help businesses maintain compliance.[2]

Based on our understanding of the job profile you refer to and according to the information provided by you, the provision of such data services will fall under the classical juridical shariah conceptual purview of Ia’anah alal Ma’siyah (aiding and abetting in sin). Accordingly, the juridical laws pertaining to the shariah conceptualization of I’anah alal Ma’siyah as espoused by the erudite Fuqahaa (Jurists) will be applicable.  

Therefore, according to Shariah Law, and in general, the prospective job profile as explained by you and understood by us, will be Makruh Tanzihi (Sabab Qareeb Ghair Muharrik Ilal Ma’siyah) due to the indirect nature (Sabab Ghair Muharrik) of the prospective services related to the job profile you refer to. [3]

The above ruling is conditional to the provision of lawful non-inference-based data services based on the relevant legislative data compliance and copyright provisions.

The above juridical condition related to the provision of lawful data services is further supported by the following Hadith.

Rasulullah Sallallahu Alayhi Wa Sallam stated:

حَدَّثَنَا عَبْدُ رَبِّهِ بْنُ خَالِدٍ النُّمَيْرِيُّ أَبُو الْمُغَلِّسِ، حَدَّثَنَا فُضَيْلُ بْنُ سُلَيْمَانَ، حَدَّثَنَا مُوسَى بْنُ عُقْبَةَ، حَدَّثَنَا إِسْحَاقُ بْنُ يَحْيَى بْنِ الْوَلِيدِ، عَنْ عُبَادَةَ بْنِ الصَّامِتِ، أَنَّ رَسُولَ اللَّهِ صلى الله عليه وسلم قَضَى أَنْ ‏ "‏ لاَ ضَرَرَ وَلاَ ضِرَارَ ‏"‏ ‏.

Translation:“There should be no individual harm caused nor reciprocal harm.” ( Sunan Ibn Majah 2340)

If the major source of funds through which the employer management company is remunerated is from interest and unlawful money, then it is not permissible for one to work at such an employment management company.

However, if the majority of the employer management company’s funds are of a permissible and shariah compliant nature, then employment at such an employer management company is permissible.

According to Shariah Law, the provision of the prospective services in reference is termed as Ijarah al-A’maal. Therefore, all the rules and laws of Ijarah al-A’maal will also be applicable.

Ijara al-A’maal: Ijara al-A’maal refers to a lease contract to engage the services of a person for a fixed remuneration over a specific tenure. For example, Zaid hires Bakr to carry his luggage to the airport. In an Ijara al-A’maal, the ‘ajir’, or labourer, provides his services to the ‘mustajir’, or employer. The ‘ujra’ is the wage or rental fee.

The Fuqahaa have further defined Ijara al-A’maal under the following juridical categorization:

Ajir Mushtarak – An Ajir Mushtarak refers to a functional project based employee who provides functional project based services in exchange for a fixed fee. For example, a software consultant (Ajeer Mushtarak) hired by the project owner (Musta’jir) to develop a specific software based on a fixed functional technical mandate.

Ajir Khaas – An Ajir Khaas refers to a mutually exclusive service-based employee receiving a fixed fee in exchange for exclusive time-bound availability of the skills/services of the Ajir Khaas. For example, a CFO hired on a fixed yearly contract by a multi-national corporation for a fixed monthly remuneration package. [4]

Kindly send us the specific terms and conditions of the employment contract you refer to for our shariah compliance review.

We advise you to recite Istighfar abundantly and seek the help of Allah Subhanahu Wa Ta’ala in guiding you to the correct decision in seeking a Halal Shariah compliant income.

You are welcome to contact us directly at the Darul Iftaa for any advice to structure a shariah compliant employment agreement at: https://www.shariahbusiness.com/about-us/ask-a-question/

And Allah Ta’āla Knows Best

(Mufti) Ismail Desai

Shariah Board and Fatwa Committee,

Darul Iftaa, Durban, South Africa

 

DISCLAIMER: The views and opinions expressed in this answer belong only to the author and do not in any way represent or reflect the views of any organizations to which he may be affiliated with. The opinions and educational information proffered in this communication are based on the jurisprudential understanding and available knowledge of the author. Given that contemporary issues and interpretations of contemporary issues are subjective in nature, another scholar may reach different juristic inferences and conclusions to those as expressed by the author. Whilst every effort has been taken to ensure total academic integrity and honesty, the author is open to corrective measures based on sound academics and juristic inferences. The Shari’ah ruling given herein is based specifically on the specific scenario in question.  The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage.  This answer may not be used as evidence in any court of law without prior written consent from the author.  Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.

 

 

and Allah Ta'ala Knows Best

Mufti Ismail Desai
Darul Iftaa
Durban, South Africa

Disclaimer The views and opinions expressed in this answer belong only to the author and do not in any way represent or reflect the views of any organizations to which he may be affiliated with. The opinions and educational information proffered in this communication are based on the jurisprudential understanding and available knowledge of the author. Given that contemporary issues and interpretations of contemporary issues are subjective in nature, another scholar may reach different juristic inferences and conclusions to those as expressed by the author. Whilst every effort has been taken to ensure total academic integrity and honesty, the author is open to corrective measures based on sound academics and juristic inferences. The Shari’ah ruling given herein is based specifically on the specific scenario in question. The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage. This answer may not be used as evidence in any court of law without prior written consent from the author. Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.

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