Nomios Cybersecurity Investment Options: Shariah Compliant?

Nomios Cybersecurity Investment Options: Shariah Compliant?

Question:

Assalamu alaikoum Mufti Ismail

I hope you’re doing good inchallah

I am and will be reading your book as quick as I can, it looks absolutely fabulous Machallah

I just wanted to know by the way, regarding an Islamic window,
What do you think cheikh of somebody who invest 10k€ in the company he works in,
The company is called Nomios specialised in Cybersecurity activity ?
What would be the elements to take into consideration regarding the Islamic side, in order to be shariah compliant ?
Best regards and thank you by advance

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]

 

We understand the importance of earning a Halal Shariah compliant income from the above Hadith of Rasulullah Sallallahu Alayhi Wa Sallam.

 

We make duaa that Allah SWT grant you Halal Tayyib Rizq with Aafiyat. InshaÁllah. Aameen.

 

Background Context:

 

Cybersecurity refers to the institutional practice of protecting digital data, devices, and digital networks from impermissible use and unauthorized access, as well as protecting the integrity and security of information. Some of the most common cyberattacks include malware (unwanted files or software that may harm a connected device or otherwise compromise data), social engineering, and phishing attacks that seek to gain unauthorized access to accounts including cryptocurrency thefts.

 

 

Cybersecurity constitutes various fields including:

Information technology, tasked with securing networks and investigating breaches or data leaks

IT auditing, responsible for ensuring compliance and standards across networks

Ethical hacking, charged with attempting to identify system vulnerabilities in the manner of a malicious hacker

Threat intelligence, responsible for collecting and organizing data around popular and new attack behaviours

Digital forensics, the process of determining how a successful attack was accomplished so it may be prevented in the future

We understand that the global cybersecurity market is valued at approximately $215 billion in 2025 and is expected to more than triple to $697 billion in the next 10 years with a projected annual growth rate of 11.3%. [2]

Nomios is a European cybersecurity and networking company that designs, secures, and manages digital infrastructures for businesses. They provide a range of services including professional consulting, managed security services, and secure network solutions. Nomios provides a number of security solutions including cybersecurity, email security, DNS Security, managed security services among other services. [3]

Contemporary Contextual Juridical Analysis (Fiqh al-Nawazil al-Muásirah)

Your question refers.

Your refer the Shariah compliant permutations related to a prospective employee investment of 10 000 Euro into Nomios cybersecurity company.

In principle, there are four fundamental matters which are considered before determining the Shari’ah Compliancy of a services-based investee company:

1. The corporeal conceptual structure of the underlying investment

2. The major source of the funds from which the company is renumerated.

3. The Shariah compliancy of the underlying terms and conditions of the contractual position between the various stakeholders including the investor and the company/the company as the service provider and the client of the company  

4. The Shariah compliance profile of the underlying services provided

We understand that prospective employees of cybersecurity companies are provided with the direct opportunity to invest into the cybersecurity company via direct stock Purchase plans (DSPP), phantom stock options, restricted stock options and stock appreciation rights while also providing indirect investment options such as ETF’s, cyber security mutual unit trust fund or direct stock investments.

The Shariah compliance of the above-referenced options will be determined based on a number of factors including the underlying terms and conditions of the corporeal structure.

For example, Phantom stock options (PSO), also known as phantom shares or shadow stock, are a form of compensation whereby the recipient receives a cash bonus equal to the appreciation in the company’s share price over a specified period.[4] The Shariah compliance of the phantom stock option award issued will be based on the shariah compliance of the underlying contractual agreements/conditions related to the relevant phantom stock option scheme.

Kindly send us the terms and conditions of the specific investment structure you refer to in order for us to issue a specific Fatwa.  

If the major source of funds through which the cybersecurity 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 cybersecurity company’s funds are of a permissible and shariah compliant nature, then employment at such an employer management company is permissible.[5]

According to our juridical contextual understanding of your question as per the above, and according to Shariah law, the juridical ruling pertaining to “Aiding and abetting of sin” (I’anah alal Ma’siyah) related to the prospective provision of such cybersecurity services will apply to the investors of such companies. Therefore, all the rules and laws of “Aiding and Abetting in Sin” as defined by the erudite jurists (Fuqahaa) will also be applicable.

Moreover, and in general, the juridical mercantile conceptualization of Ijarah will apply to the prospective provision of such cybersecurity contracts by the investors serving as the Shurakaa (partners) of such respective companies. Therefore, all the rules and laws of Ijarah will also be applicable to the provision such prospective services.[6]

Aiding and Abetting in Sin (I’anah alal Ma’siyah)

Allah Subhanau Wa Ta’ala states in the Holy Quran:

و لا تعاونوا علي الاثم و العدوان

“And do not help each other in sin and aggression.” (Verse: 5:2)

 (It has been narrated on the authority of Abdullah bin ‘Amr (Radhiyallahu ‘Anhu) that Rasulullah (Sallallahu ‘Alaihi Waallam) said, “It is amongst the major sins for a person to use abusive language in regards to his parents”. The Sahabah (Radhiyallahu ‘Anhum) asked, “O’ Messenger of Allah, will any person use abusive words in regards to his own parents?” Nabi (Sallallahu ‘Alaihi Wasallam) answered, “Yes, one abuses another’s father and the other abuses his father in return. One abuses another’s mother and the other abuses his mother in return”. (Sahih Muslim Vol.2 Pg.274 – Dar al- Ma’rifah)

We understand the severe warning related to aiding and abetting in sin from the above Hadith and Qur’anic verse. The erudite Jurists (Fuqahaa) have considered the various contextual permutations related to the juridical purview of ‘I’anah alal Ma’siyah”.

The Fuqahaa (jurists) of the Hanafi Mazhab have differentiated between “I’anaah Ilal Ma’siyah” and “Tasabbub Ilal Ma’siyah”. 

There are three distinct contextual scenarios related to the conceptualization of I’anah alal Ma’siyah and “Tasabbub Ilal Ma’siyah” as defined by the Hanafi Jurists (Fuqahaa) as follows:

I’anah Ilal Ma’siyah:

1. The intentional provision to perpetrate sin, for example, the direct intentional provision of indicators of compromise (Threat intelligence sharing) to inflict direct physical harm on the citizens of another state such as cyber-espionage, etc.[7]  

2. The direct express provision of sinful corporeal complicity, for example, the intentional provision of advanced neural prediction AI LLM Models by a technology company to be utilized by a corporation for cyber-jacking or black-hat[8] illegal hacking.

3. The item sold or hired can only be used in sin and cannot be used for any other purpose; for example. Illegal data interception or cyber-jacking services.

Tasabbub Ilal Ma’siyah

1.    Sabab Qareeb Muharrik Ilal Ma’siyah: Those actions that are directly related to the sin and are a means for the sin to come into existence.[9] (Makruh Tahrimi)

2.    Sabab Qareeb Ghair Muharrik Ilal Ma’siyah: Those actions that are directly related to the sin but are not a means for the sin to come into existence. (Makruh Tanzihi)

3.    Sabab Ba’eed: Those actions that are not directly related to the sin but are a means for the sin to come into existence at a later stage. [10]

Furthermore, The Fuqahaa and erudite Jurists have also stated that in some instances, the actual Sabab (causation) will be corporeally referenced under the legislative juridical illation (Illah) related to the requisite ruling (Hukm). [11]

For example, the deployment of Artificial intelligence (AI) cyber-neural prediction tools to be utilized in cybercrime. Therefore, the prohibitive juridical  ruling (hukm) related to cybercrime will also be applicable to the deployment of such AI cyber-neural prediction tools accordingly.

The Fuqahaa and erudite jurists have also considered the public welfare and protection under the well known juridical concept of Maslihah Mursalah.[12] Therefore, the prospective sale of evidentially harmful cybersecurity services such as cyber-espionage services will be impermissible.

Shariah also considers the confidentiality and privacy of the individual under the juridical conceptualization of Amanah.

Consider the following Hadith:

عَنْ أَنَسِ بْنِ مَالِكٍ قَالَ قَالَ رَسُولُ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ لَا إِيمَانَ لِمَنْ لَا أَمَانَةَ لَهُ وَلَا دِينَ لِمَنْ لَا عَهْدَ لَهُ

Rasulullah Sallallahu Alayhi Wa Sallam said: “There is no Eeman for one who cannot be trusted. There is no Deen for one who cannot uphold a covenant.”[13]

We understand the general contextual juridical inference related to Amanah and data privacy from the above Hadith.

Therefore, the provision of “zero-knowledge proofs” to protect data under the shariah compliance permutations of Amanah and data privacy may be considered.

Shariah promotes and fosters individual trust.

Consider the following Hadith:

حَدَّثَنَا بِشْرُ بْنُ مُحَمَّدٍ، أَخْبَرَنَا عَبْدُ اللَّهِ، أَخْبَرَنَا مَعْمَرٌ، عَنْ هَمَّامِ بْنِ مُنَبِّهٍ، عَنْ أَبِي هُرَيْرَةَ، عَنِ النَّبِيِّ صلى الله عليه وسلم قَالَ ‏ "‏ إِيَّاكُمْ وَالظَّنَّ، فَإِنَّ الظَّنَّ أَكْذَبُ الْحَدِيثِ، وَلاَ تَحَسَّسُوا، وَلاَ تَجَسَّسُوا، وَلاَ تَحَاسَدُوا، وَلاَ تَدَابَرُوا، وَلاَ تَبَاغَضُوا، وَكُونُوا عِبَادَ اللَّهِ إِخْوَانًا ‏"‏‏.‏

Rasulullah Sallallahu Alayhi Wa Sallam Said “"Beware of suspicion, for suspicion is the worst of false tales; and do not look for the others' faults and do not spy, and do not be jealous of one another, and do not desert (cut your relation with) one another, and do not hate one another; Be brothers (as Allah has ordered you!")[14]

We understand the general impermissibility related to spying, in addition to the contextual prohibitive juridical inference related to illegal data-sharing accordingly.

Furthermore, we understand the contemporary harms of cyber-espionage/spying in the form of economic harms such as reputational damage/operational disruptions and individual harms such as blackmail and psychological harms. [15]

Islam promote mutual assistance and aid.

Consider the following verse:

و تعاونوا علي البر و التقوي

“And aid each other in piety and righteousness.” (Verse: 5:2)

We understand the importance accorded in Islam to mutual aid and assistance towards righteous causes.

We contextually understand that one may consider various mutual aid and assistance causes such as protecting/defending Islamic websites, combating misinformation/malicious behavior or providing cyber counselling/advisory services to local reputable Islamic organizations.

Concluding Advices (Nasaíh Amaah)

1. The Shariah considers the general norm (Urf) when considering the shariah compliance of contractual mercantile matters.

Consider the following juridical principle:

االعادة محكمة

“The norm is preferentially precedent” [16]

We have therefore considered the general norm in providing general guidance related to the specific investment options/structures you reference in your question.

Accordingly, we cannot issue a conclusive Fatwa without reviewing the specific contextual investment scenario you refer to.

2. Moreover, one may also consider the adoption of alternative shariah compliant investment structures such as shariah compliant cybersecurity investment platforms, fund of funds and Shariah compliant safe notes. One may therefore also consider contacting other shariah compliant venture capital funds to consider prospective shariah compliant co-investment structures/solutions.
3. Furthermore, we advise Muslim cyber-professionals to consider adopting a proactive approach in considering innovative cyber-security and cyber-resilience solutions.

Did you know that the Qur’an addresses the conceptualization of Electromagnetic pulsars and fields, which are crucial in modern contemporary quantum computing for controlling qubits, where precise electromagnetic pulses manipulate their quantum states, and for creating synthetic fields to simulate complex material properties.[17]

We understand that cryptographers have recently developed various quantum cryptographic cybersecurity solutions such as Post-quantum cryptography (PQC) to enhance cyber-resilience in the modern digital age of quantum computing. [18]

Consider the following verse of the Qur’an:

Allah (Subhanahu Wa Ta’ala) says:

انا زينا السماء الدنيا بزينة الكواكب و حفظا من كل شيطان مارد لا يسمعون الي الملا الاعلي و يقذفون من كل جانب دحورا و لهم عذاب واصب الا من خطف الخطفة فاتبعه شهاب ثاقب

Translation:  “Indeed we have adorned the lowest heaven with lamps, and (we have made such lamps) as a guard against every obstinate devil, (so) they should not eavesdrop into the upper heavens and they cast away from every side, repulsed, for them shall be a perpetual punishment/chastisement, except the one who snatches away something stealthily, after which, they are pursued by a flaming star, of piercing brightness” (Surah Saaffaat, 6-10/37)

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

و الله تعالي اعلم بالصواب

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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