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)?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
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.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/17209
Where this answer came from
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- Ftawy
- Original fatwa ID
- 17209
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy