What is the ruling on investing in the Moroccan company UpDate Academy, which employs methods of earning that include: package profits, line profits (referring people), generation profits (commissions on direct and indirect referrals), and golden seat profits (shares)?
For investment in companies to be permissible, it is stipulated that their activity must be lawful, that they do not guarantee the capital, and that the profit be a known percentage of the company's profits, not of the capital. The aforementioned company guarantees the capital, sets a fixed profit in some cases, and requires the purchase of shares to enter network marketing, which makes dealing with it unlawful. Furthermore, the accuracy of the company's activity must be verified, and caution must be exercised when dealing with companies whose activity is not precisely known or which involve Sharia violations.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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