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?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
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.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/173972
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- Ftawy
- Original fatwa ID
- 173972
- 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.
- Read the full ruling
- Read the full answer on Ftawy