Is it permissible to give money to a friend who works in contracting, on the condition that he returns a profit ranging from 35 to 40%?
There is no harm in giving money to a friend to invest it in contracting, in exchange for a known percentage of the profit, provided that the conditions of (profit-sharing) are observed. However, specifying the percentage as being between 35% and 40% is not permissible; rather, a known percentage must be specified and applied to the profit, not to the capital. This is because applying the percentage to the capital is considered a guarantee of a known amount, which is not permissible in a mudarabah contract. Scholars have unanimously agreed on the invalidity of qirad (another term for mudarabah) if one or both parties stipulate a fixed number of dirhams for themselves.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/171888
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 171888
- 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