Is it permissible to invest in a gold trading company through a 6-month contract that guarantees the principal and a monthly profit rate ranging between 10% and 12%, with the possibility of renewing the contract and withdrawing the deposited amount under certain conditions?
It is not permissible to invest in this company under these conditions, because it is not valid to agree that you give your money to them for investment with a guarantee of capital, or a guarantee of a percentage of profit added to the capital. Sharia-compliant investment and Mudarabah are based on sharing in profit and loss. If a guarantee of capital or a share of loss is stipulated, then the condition is void, but the contract remains valid according to the majority of scholars. However, if the share of one of the partners is specified as a known amount of money, the partnership becomes void.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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