What is the ruling on the New Suez Canal investment certificates, and is the return from them permissible or forbidden?
If investment certificates have a fixed guaranteed return, they are considered usurious loans (riba), which are forbidden. Islamic texts stipulate that an interest rate determined in advance is forbidden usury of increase, and it is not permissible for a Muslim to benefit from it. As for the claim that it is a bonus, this is not applicable to a fixed return. Similarly, the claim that it is a deposit is refutable because a deposit is not used for profit, and it is not for safekeeping but for investment; thus, it is closer to a loan. Moreover, it is not considered a legitimate (profit-sharing partnership) because Mudarabah entails sharing in both profit and loss, whereas here the return is predetermined, which invalidates the Mudarabah contract.
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