What is the Shar'i (Islamic legal) ruling on the transaction and the method of calculating profit for a fixed-term investment contract (one year), knowing that part of the amount will be used to pay off debts and increase merchandise, and do discounts given to relatives affect the validity of the partnership or investment?
It is permissible to structure the investment as a temporary contract, provided there is mutual consent and no harm to the Mudarib, such that the capital owner gives the money to purchase and sell medicine. The medicine specific to the Mudarabah must be distinguished from other medicines to determine its capital and profit. The profit is then divided between the two parties according to their agreement. It is not permissible to take a portion of the amount for settling the pharmacy's debts or personal debts within the Mudarabah. If one wishes to do so, they must borrow an amount from the capital owner for this purpose. The alternative is to allocate the amount for purchasing new medicines and direct the profit towards settling previous debts.
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Reviewed by El Fatwa's sharia committee.
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