What is the Islamic legal ruling on investing in a Moroccan cosmetics company that operates on the principle of profit sharing, where the investor buys a share for $25, and the company promises to purchase a quantity of oil and manufacture products to share the profits, so that the investor receives $35 (140% of the capital), in addition to a daily percentage of 1 to 3% of the company's profits, with the possibility of earning from inviting friends (10% for the first level and 5% for the second level), and purchasing a golden membership to increase profits?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
For partnerships to be valid, the capital must not be guaranteed, and the partner's share must be a percentage of the profits, not of the capital. The mentioned transaction is prohibited because the shareholders' shares are guaranteed, and the profit per share is fixed at 140% of its value. Furthermore, earning profit by inviting friends falls under pyramid or network marketing. As for the "golden membership," it is impermissible due to its inclusion of gharar (excessive uncertainty) and gambling.
Summarized from the full answer at Ftawy · imported
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- 192638
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