Due Diligence for Muslim Investors: How to Invest with 'Baseera'
How could we have been so blind?
After the latest dagger in the heart of the Muslim community, many of us stand here today with our trust and confidence in the ‘Muslim space’ at an all-time low.
Already demoralised and downbeat with a challenging economy and increasingly sinister world affairs, where our enemies continue to oppress our brothers and sisters with impunity, the bitterest blows recently have ironically been served to the community by a few of its own.
The pain is much more to bear when it comes from someone close, than your worst enemy. Particularly when that close person is considered pious - because it reflects badly on the religion and what we hold sacred. It adds insult to injury, salt in the wound.
As Malcolm X once said
“To me, the thing that is worse than death is betrayal. You see, I could conceive death, but I could not conceive betrayal.”
With ‘friends’ like these, who needs enemies, eh?
My heart goes out to anyone who has been impacted by these events which has sent shockwaves through our society and I pray that Allah makes it easy for them to recover financially, emotionally and spiritually from this sinister situation.
What I have seen over the weekend is a lot of frenzy and fury, understandably so, given the sheer audacity of the scheme and how huge the loss incurred was. It’s crazy numbers (some say £20m+) from what I have been hearing.
However, as the dust settles we need to look at WHY this seems to happen time and time again - and what we can do to avoid it happening EVER again.
A Sign of the Times
The first thing to consider - these events may be symptomatic of the end times we are in.
“Before the Hour comes, there will be years of deceit, in which a truthful person will be disbelieved and a liar will be believed; and the insignificant will have a say”. (Ahmad)
It is not a coincidence more and more people are being exposed. There’s a lot of darkness at the top.
The year started off with Katt Williams exposing many in Hollywood, including Kevin Hart. This year we’ve seen P.Diddy and all his party shenanigans exposed, along with his long-standing associates and affiliates…
"All these big deviants are catching hell in 2024. It’s up for all of them. It don’t matter if you’re Diddy, or whoever…TD Jakes, all lies will be exposed.” - Katt Williams, Jan 2024
Having said that, we have a responsibility ourselves - and the sad thing, having worked with the Muslim community for over a decade now is there are major, major flaws in how we operate as a community which we must improve if we are to avoid such scenarios again at this scale.
Low-Level Thinking
The first problem is that we have low-level thinking.
We don’t think big, or have big ambitions to achieve great things and invent things and add value to society. It’s very me-centred and as a result, all we want is to make money easily - instead of money being a byproduct of the great contribution you’ve added to the world.
We are the ultimate short-term thinkers.
We don’t see the problem with making a quick buck instead of setting up the systems and institutions that will lead to generational wealth.
Our objective to seek wealth is to buy more possessions, have a nice house etc. It’s very limited ambition and it gets us individual success but not community success.
Do you think the state of Israel happened overnight? No, it was a long term objective and strategy over 50-100 years. Everyone knew their role and this overarching umbrella kept them focused on the big picture. They knew they needed to dominate banking, politics, media, law, entertainment, culture and eventually they will be able to influence society from a position of strength, despite their small numbers.
Same with China, in the early 80s, after Mao had set the country back with his toxic brand of communism, they put together a 50 year plan to become an economic superpower. This meant major investment in factories to become the production hub of the world. They also rejected most foreign brands so they could build their own. They are nearly at the end of that plan and look at them today.
What’s our big picture?
It needs a collective effort, a model or system to follow en masse that will allow us to build up our economic strength and influence over time. We are the most populated demographic in the world, alongside China. Yet we are punching below our weight the most. It’s embarrassing and we need to wake up.
We’re currently consumers, not producers. That MUST change.
Laziness
The second problem is that we are extremely lazy as a collective. No-one really wants to work hard any more or take big risks. Greatness is NOT achieved on autopilot. You have to struggle, strive and suffer to succeed. And it’s often SLOW. Simple.
Passive income doesn’t really exist - everything requires effort of some kind. Even property which is often cited as the ultimate passive income - requires effort in affording the damn thing in the first place, not to mention ongoing maintenance.
There are some genuinely great courses and programs out there. Muslim and non-Muslim. Many of which can really make a difference to one’s life. But to achieve success in them, you have to do the work.
“You can’t complain about the results you didn’t get from the work you didn’t do.” - Adam Kaan
What work are you doing to get to the success that is required?
Ibn Masud (RA) once said:
“You are living in a time where truth controls the desires but there will come a time where the desires will control the truth. We seek refuge in Allah from such a time.”
Even when it comes to investing, to do proper due diligence requires effort.
Scrutinising details, contacting testimonials. Often not verifying is where our desires take control, as we are not willing to take the effort needed to verify either because it’s difficult or time-consuming.
Lazy Thinking
Combining the low-level thinking with the laziness, we also have lazy thinking. We don’t critically think or question - instead we are impressed by big names, logos and credentials.
We have become far too accepting and passive.
In the deceptive age we live in, we should get used to questioning everything we are told! Especially with the dangers of AI and how easy manipulation is nowadays, what we receive by the media for example, is often doctored news to serve precise goals and objectives which are intended to further enhance the image of why you need the system running the way it is. If you can’t see it at the obvious, macro level, you’re going to miss it at the lower level - because you didn’t develop your ability to be diligent and critically think. Always question the narrative, verify sources and check evidence before taking action. In anything.
‘O ye who believe! If a wicked person comes to you with any news, ascertain the truth, lest ye harm people unwittingly, and afterwards become full of repentance for what ye have done’. (49:6)
There’s a reason why the chain of narration system which help to verify hadith is so comprehensive and strong.
Lacking in Knowledge
We are supposed to be people of justice. One rogue does not represent the rest. The Prophet Muhammad (peace be upon him) said:
“The worst of people is the one who sells his religion for the sake of worldly gains.” (Sahih Ibn Hibban, Hadith 145).
This is also why we need to be careful of not descending into a mob mentality wanting to burn all coaches, course creators and Muslim entrepreneurs at the stake. It’s no good to throw out the baby with the bathwater - because by doing so - you do an injustice to the great talent we have in our ranks, first and foremost, and secondly, you cut yourself off from the very thing you need most - KNOWLEDGE.
“The Prophet said, “Just before the Hour, there will be days in which knowledge will disappear and ignorance will appear, and there will be much killing.’ ” [Ibn Majah; also narrated by al-Bukhari and Muslim, from the hadith of al-A’mash].
Understand that the second and third-order effects of this scandal is NOT just on the victims themselves. The footprint of the impact is huge.
Other innocent people who may have been falsely accused, smeared by association and the tainting of the industry as a whole, which contains many sincere people of integrity will naturally suffer the consequences of a depressed market lacking trust. Not to mention the PTSD of the victims who may now be unwilling to invest in other genuine ventures or schemes, because of the scars from this one. Our wealth will not circulate within the community as freely and that will then dent long term progress.
Talking of knowledge, we have extremely low financial literacy as an Ummah. This has been a blind spot for too long. Perhaps these are the after effects of colonisation and the poverty mindset that still plagues us. But this is how charlatans and rogues can take advantage of your ignorance. After all, in the land of the blind, the one-eyed man is king.
How can we improve this?
Perhaps IFG or Wahed can release some free financial literacy training in different languages that we can all access and shared widely with the mosques.
A Lack of Barakah and Contentment
What we lack in spades is proper barakah. This is missing from our society in general - perhaps because we’re not doing what we’re supposed to do.
We’re not working towards that higher purpose, we’re not doing justice to the gifts Allah has given us. When your life lacks barakah, it can often be hit with calamaties from all over.
Perhaps you lose wealth because that itself lacked barakah. Again, this is not to apportion blame to any victims at all - I am talking in general at the overall Ummah level.
We could also lack barakah because we are not grateful for what we have. We lack contentment, always seeking more and therefore our greed takes over.
How can we be more satisfied with the gifts Allah has given to us?
Increase your Intuition
“They have hearts with which they do not understand, they have eyes with which they do not see, and they have ears with which they do not hear. Those are like livestock…” (7:179)
A huge part of knowledge is intuition, insight and instinct. Whilst the brain works in a way where it processes data and learns from external sources, then retains it, this is the stuff that comes from within you. This is knowledge that comes from the heart and soul. We tend to bash this stuff as it can’t always be explained ‘scientifically’.
As you nurture your spirituality, you get blessed with a deeper understanding of this type of knowledge, known as baseera (wisdom).
We’re sadly fast losing this ability in our overly-analytical, science driven, secular world. Logic is not bad in of itself of course. But the problem with only relying on external knowledge and discarding the other stuff is that it is short-sighted. Not everything can be analysed using your rational faculties alone. Sometimes you need to listen to your gut.
Learn to use intuition and your gut instinct more. We are surrounded by so much misdirection and deception that often our natural fitrah, our heart is all we can rely on, as the mind and eyes can be easily deceived. This also means do not ignore red flags. If you feel something is not right… trust it.
A good, simple policy: if it’s not a hell yeah… it’s a no.
Learn to build baseera and insight through the remembrance of Allah. Do istikhara if you are still not sure. And do shura and ask trusted friends for their opinion.
“He (Allah) grants wisdom to whom he pleases; and he to whom wisdom is granted indeed receives benefit. But none will grasp the message except men of understanding.” (2:269)
Recognising truth from falsehood in the era of dajjal cannot be done without hikmah.
Speaking Up for Justice Sooner
This is a difficult one. Hindsight is a wonderful thing and in Islam, husn-al-dhan is something very important. But this can often blind us to blatant red flags and dodgy behaviour. Many are now speaking up after the event, saying they knew something wasn’t quite right. It’s hard to determine whether someone is actually dodgy or if they’re just eccentric. But the tell-tale signs are there.
If we do see aggressive or unethical selling, misused testimonials, and overzealous emotional and Islamic tactics then we should call it out - privately at first, as naseeha and then beyond if the practices do not stop.
At the same time, we must BE just and balanced - if the answers you have received are satisfactory, then bismillah. Put your trust in Allah and move forward. You’ll never feel 100% about anything so don’t overthink and challenge unnecessarily.
What is patently clear, is that we as an Ummah have been bitterly bruised and burnt by this saga.
We really need to pay heed to some of these lessons, become more savvy, and develop much more BASEERA.
BASEERA: A Framework for Due Diligence
Baseera, as mentioned earlier means wisdom, insight, intuition.
Allah’s name - Al-Baseer means the All-Seeing so baseera also can mean vision, too.
With that in mind, I have put together a framework for Muslims to follow to become much more vigilant when making such decisions to invest in the future - whether it’s in a high ticket program or an long term passive investment.
Investing in general is a good thing - after all, Islam encourages long-term investments over "saving" (i.e. doing nothing with the money). Savings will only reduce over time due to zakah and inflation. And investing in one self is also a very worthy endeavour so you become the best version you can be.
So we need to learn how to spot the dodgy from the dependable, the trickster from the trustworthy and the sleazy from the sincere.
Here’s how it works:
B: Balance: Stay calm, measured, and rational. Avoid being swayed by emotions like fear or greed. A balanced approach ensures decisions are thoughtful and fair. Remember your objective and that all rizq and benefit is from Allah - and there is an abundance, there are always other opportunities out there. This will allow you to avoid FOMO.
Always check yourself and your emotions before responding to anything: "Is this decision based on facts or feelings?"
A: Ask: Be proactive. Seek answers to eliminate doubts and clarify uncertainties. Ask questions until you are satisfied. Do not fear questioning. Do not feel shy that you have asked too many. Justice is a matter of yaqeen, conviction and certainty in the heart — but be sincere to the truth in doing so — not to use questioning as a means to intimidate or oppress. Be alert to signs of fraud, inconsistency, or unethical behaviour. Avoid situations that are vague and lack transparency or honesty. Prepare specific questions such as: “What is the downside? What evidence supports this? What am I missing?”
S: Sense: Listen to your intuition. If something feels wrong, investigate further or step away. Beware of exaggerated claims or persuaisve language designed to mislead. Be sceptical of claims that seem too good to be true. Ask yourself - do you really believe this will get you the results you are looking for? Does this ‘feel’ right? Gut instincts are often the first indicator of hidden risks.
E: Examine: Delve into specifics like financials, contracts, and operations. Examine every aspect thoroughly. Evaluate the core offering - NOT the marketing fluff. Are they registered, certified, FCA approved, Shariah compliant etc. Compare it to the industry standards - how does it compare? If it is grossly different (i.e. way better than the industry averages) - then this is a red flag. A good tip to do this is to break down complex details into manageable parts and verify each one separately.
E: Engage: Seek further guidance through istikhara and shura (consultation) with people you trust. Do not be emotionally attached to any outcome - stay on the fence and get unbiased opinions. Seek out the testimonials if requested and get verification for them if needed.
R: Restrict: A simple one but very important. Only invest what you can afford to lose. Avoid overextending or borrowing beyond your means - especially if it is riba-based. If using payment plans - then make sure they are affordable and sustainable down the line. Think about other options - what else can you do to mitgate your risk?
A: Act / Avoid: At this stage, if you’ve been through the previous ones, you are ready to ACT and make your decision. If satisfied up to now, move forward confidently and place your trust in Allah for ther results. If a loss is made from here - then it was as Allah wills, you did enough due diligence to justify going forward. You win some, you lose some. And in investments, you cannot guarantee results as it then becomes riba.
If you feel uncomforable to go forward based on what you’ve uncovered from your findings or just an internal feeling - then step away and AVOID, knowing you’ve acted responsibly and content to avoid the risk - even if you later hear it has skyrocketed and done very well. Your rizq is written, and it wasn’t meant to be, this time.
BASEERA is a powerful framework you can use next time there is an investment decision to make.
1. Begin with Intention: Before starting, make a sincere intention to act responsibly, put barakah in whatever choice you make and in a way that pleases Allah.
2. Follow Each Step: Use each letter of BASEERA as a checklist for decision-making and due diligence.
3. Seek Support: If you feel uncertain or pressured at any point, do not make the decision alone. Seek help and advice from others who may be more aware.
4. Understand and internalise that all rizq comes from Allah - and to not be attached to any outcome. Surrender to Him. He can replace what has been lost in the blink of an eye - and he can also take away ill-gotten riches.
I do hope we as a community do not turn a blind eye to the changes we really need to make and the truths we need to face up to.
Sometimes you need to feel the pain, before you actually transform. I hope this is one of those situations instead of it setting us back, it galvanises us and we use it to grow and develop where it is sorely needed, and as such, we can recover, rebuild and revolutionise the economic state of Muslims insha’allah. You see I have a lot of hope.
I pray that the victims recover and that justice is done, to all parties involved. There is always more than meets the eye in such matters so I wouldn’t be surprised if there are a few more reveals in store, later down the line. Nothing surprises me much, any more.
May we all increase our baseera, barakah and our rank as believers, ameen.
NB: I have written a few relevant articles about Muslim entrepreneurship, wealth building and economic impact which I will link below for further reading:
