What is the ruling on profiting from shares in a company that operates in exploration, waste recycling, and energy generation, and provides a fixed weekly return that is expected to be a minimum profit, with the possibility of the shareholder receiving additional profits at the end of the year if the company's profits increase?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
It is permissible to trade in pure shares, which are shares of companies engaged in lawful activities that do not deal with Riba (usury or interest), whether through deposits or loans.
It is permissible for a shareholder to receive a weekly or monthly amount "on account" if the company's profits have actually materialized, with the account being settled at the end of the period.
The proportion of profit for both the shareholders and the company must be known, and it is stipulated that the shareholder's capital is not guaranteed. It is not permissible to issue preferred shares that guarantee the capital or a certain amount of profit.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/16788
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- Ftawy
- Original fatwa ID
- 16788
- Imported
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- Source text, unreviewed
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