Is it permissible or forbidden to give money to a person to invest it in selling a commodity of known price, profit, and capital cycle, in return for a fixed monthly amount with an increase in profit as the commodity's price increases, and with a guarantee of full capital recovery?
This transaction is legally impermissible because in companies, losses are borne by the capital, and it is not permissible to stipulate a guarantee of the capital therein. Scholars have differed on whether this condition invalidates the company or if the company remains valid and only the condition is invalidated. However, specifying a guaranteed fixed amount to be given to the capital owner invalidates the company by scholarly consensus.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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