What is the ruling, in Islamic law, on investment certificates with variable income and those with fixed income?
We have clarified in previous fatwas that investment certificates with a fixed, guaranteed return are considered a usurious loan and are forbidden. This is because the depositor pays money to the bank to receive it back with an increase, which is considered usury. A Muslim must avoid them, due to the Almighty's saying: {O you who have believed, fear Allah and give up what remains [due to you] of usury, if you should be believers} [Al-Baqarah: 278], and due to the Prophet's (peace and blessings be upon him) saying: "The Messenger of Allah cursed the one who consumes usury, the one who feeds it, its scribe, and its two witnesses, and he said: 'They are all equal (in sin).'"
As for investment certificates that fall under the ruling of legitimate , where the owner of the capital gives his money to the bank to invest it in a project in exchange for a percentage of the profit (if a profit is made) without guaranteeing the principal or a known profit, this type is permissible to deal with and benefit from its profits.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- 176168
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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