What is the ruling on profits given by a bank that guarantees the principal, donated based on a fatwa by the Sharia Committee which cited the Hanafi school's opinions on the invalidation of the condition and the validity of the contract in a فاسدة (fasidah) Mudarabah?
It is not permissible to stipulate a guarantee of capital in a contract, even if the mudarib (the bank) offers it as a donation, because mentioning it in the contract makes it a condition that must be fulfilled. The Islamic Fiqh Academy has ruled that the condition of guarantee is void if it is stipulated in the prospectus or mudarabah . Some scholars view it as permissible for the mudarib to guarantee the capital as a donation if this occurs after the contract has been concluded and the work has commenced. The Hanafis and Hanbalis have stated that the condition of guaranteeing the capital if it is lost is void, while the contract remains valid, and the loss is borne solely by the capital provider. The profits the questioner receives from the bank are permissible, whether based on the view that the mudarabah contract is valid and the guarantee condition is void, or based on the view that the mudarabah is invalid, in which case all profits belong to the capital provider, and the mudarib receives a fair wage (ajr al-mithl) or a customary share of profit (qirad al-mithl).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- 82740
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- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy