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?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
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.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/158373
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 158373
- 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