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What is the ruling on participating in an investment company that guarantees partners fixed monthly profits, and these profits change in the event of a loss?

1 min readAlso available in العربية

The aforementioned contract includes a guarantee of capital and profit, and such a guarantee is not permissible in a partnership (sharika) or a commenda (mudaraba) contract. Furthermore, the condition that a shareholder may never sell their share is considered a void condition because it contradicts the essence of the contract. Engaging in these void contracts is not permissible.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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