Is receiving a fixed monthly sum from a real estate company in exchange for investing with them considered usury (riba) if the company does not liquidate profits annually but rather provides fixed monthly profits? And how can one dispose of these profits if they are unlawful, and is it permissible to dispose of them partially in installments?
For the validity of investment in companies, it is stipulated that the investment field must be permissible, and that an agreement is made on a common percentage of the profit, not a fixed amount or a percentage of the capital, and that the capital is not guaranteed. It is permissible to pay monthly advances to participants if profits have actually appeared, provided that an offset is made when the profit account is settled. The truthfulness of the company and its adherence to reporting its profits must be verified. The profit taken may be permissible (halal) or usurious (riba). If the company stipulated a profit percentage and what was taken was equal to, less than, or more than it, and the company voluntarily gave the excess, then there is no harm. If the company did not stipulate a profit percentage, then the company is invalid, and the correct approach in this case is for the worker to be given the profit that is customary for similar endeavors. If it becomes clear that the company did not invest the money but rather paid off debts or placed it in usurious bonds, then taking profit is not permissible. Whatever was taken from it and spent is not subject to any obligation, and what remains should be disposed of by giving it to the poor and needy.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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