Does opening an account that deducts a portion of the profit to cover potential losses at Al Baraka Bank render the transaction an unlawful Mudarabah, and what is the ruling on the profits provided in this case?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible to deal with banks that adhere to -compliant (profit-sharing) principles, and their profits are lawful. There is no objection to deducting a portion of the profits to cover potential losses if this was stipulated from the outset or agreed upon later. This does not fall under guaranteeing the capital, which would invalidate the Mudarabah contract.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/81719
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 81719
- 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