What is the ruling on investing money in an algae company where the profit is semi-fixed (from 3750 to 4000 pounds monthly, except for two months for maintenance and during times of environmental disasters), and it continues for ten years, after which the basins are re-maintained at the investor's expense, or the project is terminated without the return of the capital?
For investment to be permissible, it is stipulated that one must have knowledge of the permissible investment field, that the capital is not guaranteed, and that the profit is specified as a common percentage of the profit, not of the capital. So, if it is said: "The profit is from 3750 to 4000 EGP every month," this is not sufficient for the transaction to be valid; rather, the profit percentage must be agreed upon first.
As for investment in algae tanks, if money is invested in them, their ownership becomes shared, and it is not permissible for their maintenance to be solely your responsibility. When the partnership ends, actual or constructive liquidation must occur to return the capital and distribute the profit.
The aforementioned contract is considered an impermissible Mudarabah (profit-sharing) and it is not permissible to enter into it, because it involves gharar (excessive uncertainty) and amounts to devouring people's wealth unjustly. It is advisable to stay away from such companies and invest with trustworthy individuals.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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