Is giving a sum of money to a company owner in exchange for a specific monthly percentage considered unlawful (haram), and is this similar to banking transactions?
If the inquirer wishes to invest his money, he must adhere to Sharia regulations: the investment field must be permissible, and each party's share of the profit must be a common percentage, such as one-third or one-quarter, not a fixed amount; otherwise, it would be prohibited usury. Also, the worker should not guarantee the capital unless there is transgression or negligence. In such cases, the loss is borne by the owner of the capital in his money and by the worker in his effort. As for depositing money in usurious banks to obtain interest, that is prohibited usury.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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