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Is investing in a company that pays 170% in addition to 70% of the loaned capital after 120 days, with a daily profit payment until the agreed-upon percentage is complete, considered usury (riba)?

1 min readAlso available in العربية

It is not permissible to invest in this company because it is based on prohibited usury (riba). The investment relies on guaranteeing the principal and on the profit being a percentage of it. This is considered a usurious loan, which is forbidden by scholarly consensus. For a partnership (sharika) to be valid, three conditions must be met: The profit share must be a known percentage of the actual profits, not of the capital; the principal must not be guaranteed; and the company's field of work must be known and permissible.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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