Is it permissible for me to give money to a friend for him to invest in his company in exchange for 7.5% of the profits (150,000 EGP) or an apartment equal to the same amount after the project ends, knowing that he will hand over the apartment before the end of the year?
The conditions for a valid (profit-sharing) contract are: that the investment be in a permissible () activity, that the capital be subject to profit and loss and not guaranteed, and that each party's share of the profit be a common share, not a fixed amount or a percentage of the capital, but rather a percentage of the profit if it occurs. If the contract includes a guarantee of capital or a fixed profit, the guarantee clause becomes void. As for the issue of providing an apartment as profit, it cannot be definitively determined, as it depends on possibilities and circumstances that cannot be assessed. Therefore, the matter should be presented directly to scholars.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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