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The question

Is it permissible to give a sum of money to a merchant who owns a factory for producing electrical wires, for him to use it in purchasing copper as raw material, then manufacturing it, on the condition that the sum be repaid with a fixed profit at the end of the year?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

It is not permissible to invest money through a company or (a partnership in profit) by entrusting money to someone to work with it, unless certain conditions are met. One of these conditions is that both parties agree on a shared, unspecified portion of the profit for each of them. It is not permissible to stipulate a fixed sum. If one of the partners stipulates for himself a known amount of money (in dirhams), the partnership becomes void. This is a matter of consensus among scholars. Therefore, Mudarabah is not valid if it stipulates that the merchant gives you a specific, predetermined amount.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
146325
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