Is it permissible to invest in a public Mudarabah company, where the capital is provided by the investor and the effort by the company, and profits are distributed at a rate of 60% to the company and 40% to the investor, and in case of loss, the investor bears the capital and the company bears the effort, with the company committed to investigating what is permissible (halal) in its work, noting that the company's accounts are in Islamic banks?
Source: FtawySummarized from the full answer at Ftawy · reviewed Sep 2, 2026
The terms of the aforementioned contract apply to Sharia-compliant Mudarabah, which is when a person entrusts money to another to invest it in permissible ventures in exchange for a common share of the profit. For its validity, it is stipulated that the capital must not be guaranteed except in cases of transgression or negligence, and that the two parties agree on a common share of the profit, not a fixed amount or a percentage of the capital. Therefore, there is no objection to this transaction.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
Read the full answer on Ftawyhttps://ftawy.com/en/questions/86697