What is the ruling on investing in an oil company that allows the purchase of a barrel for $10 and a daily profit of $2.8, with profits increasing as the invested amount increases, given that the mechanism for achieving these profits is unknown?
The aforementioned transaction is invalid because it stipulates a known, fixed profit, which is not permissible by the consensus of scholars. Among the conditions for investing money through Mudarabah (profit-sharing partnership) is that the two parties agree on a fractional share of the profit for each of them, if a profit occurs, not a fixed amount. This is because stipulating a known amount may lead to taking all the profit, or taking a portion of the capital, or harming the one for whom the amount was stipulated. Furthermore, this type of investment is predominantly conducted through global stock exchanges, most of whose contracts involve Sharia prohibitions.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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