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The question

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?

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

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 Mudarabah 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.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
158636
Imported
Translation status
Source text, unreviewed
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