Is paying EGP 5,000 with a monthly return of EGP 500 for six months, with the possibility of a 10% gain or loss borne by the client, considered an investment or usury?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This contract is an invalid for two reasons:
1. Specifying the share of the capital owner from the profit as a percentage of the capital. This invalidates the Mudarabah because the original principle is that his share should be a diffused percentage of the profit.
2. The company (the agent) bearing a percentage of the loss. This contradicts the fundamental principle of Mudarabah, which is that the agent does not guarantee the Mudarabah capital, or any part of it. The loss in the capital is borne solely by the capital owner.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/73723
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 73723
- 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