Is a project in which the capital is from me, and the profit is distributed according to pre-determined percentages (10% for me, 10% for another, and the rest for a third), and in which the bearing of loss was not discussed, considered usury (riba)? And how can it be corrected if it is?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
If the phrase "a project with a guaranteed 100% profit" is intended to express confidence in the project's success, rather than stipulating a guaranteed specific profit or capital, then there is no issue with it. Loss in Mudarabah (profit-sharing partnership) is incurred on the capital, and what is prohibited is stipulating a guarantee of the capital. Scholars have differed on whether the Mudarabah becomes void by stipulating a guarantee of capital, but the preponderant view is that the condition is void, but the contract itself remains valid.
Summarized from the full answer at Ftawy · imported
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- Original fatwa ID
- 170552
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