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The question

What is the ruling on dealing with a foreign club that trades in goods and grants shareholders a daily profit margin of 0.25%?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

If the stated percentage is guaranteed to the shareholder, then it is usury (riba) because it is a loan with interest. However, if the percentage is not guaranteed and the shareholder obtains it only when profit is realized, then there is no harm in it, provided the goods are lawful and the (profit-sharing) contract is valid. If the goods are unlawful, then it is not permissible to participate in the club, and any benefits obtained would be unlawful wealth that must be disposed of by spending it on the welfare of Muslims or on the poor and needy. Scholars dislike associating with those who do not refrain from unlawful acts.

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Where this answer came from
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Ftawy
Original fatwa ID
117514
Imported
Translation status
Source text, unreviewed
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