What is the ruling on participating in a company that grants monthly profits at a specific rate (20%) with a guarantee of capital, except in cases of loss or bankruptcy?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The described scenario combines partnership (Sharika) and commenda (Mudaraba), and it is permissible, provided that the company does not guarantee the capital; because the partner's hand is a hand of trust (yad ), and that the partner's share in the profit is not a fixed amount or a percentage of the capital, but rather a common percentage of the profit. It is also a condition in a joint Mudaraba that the capitals be distinguished to avoid compensating the loss of one partner from the profits of the others.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/131430
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- Ftawy
- Original fatwa ID
- 131430
- 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.
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- Read the full answer on Ftawy