What is the ruling on investing in a company that sells flour and distributes profit with investors on the basis of a monthly percentage with an agreed-upon minimum, with the possibility of the investor receiving a percentage of the original amount only if the company closes before the end of the agreed-upon period?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is impermissible to invest money in a company that guarantees profit and principal, or that stipulates the partner receives a portion of the principal upon termination before the term expires. This is because such conditions invalidate the contract and unjustly consume the partner's wealth. The profit must be a common percentage of the actual profit, and the loss is borne by the principal unless there is misconduct or negligence. It is permissible to set a time limit for the Mudarabah and to disburse some profits on account.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/158636
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 158636
- 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