Is investing in buying chickens and selling them through a company that raises them and sells their eggs, in exchange for profits transferred to the investor, permissible in Islamic law, given that there is a contract between the two parties and the investor can follow up on the sales process and withdraw profits electronically?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
This investment is called -compliant . It is a contract between two parties: a capital provider who offers funds, and an agent who works with them. They share the profit according to a pre-agreed ratio. The capital provider contributes with their money, and the agent with their effort. In case of loss, each party loses what they contributed.
Among the conditions for the validity of Mudarabah is that the investor's profit must not be a percentage of the capital, but rather a percentage of the profit. What invalidates it is the agent guaranteeing the capital, because that transforms the contract into a loan that entails a benefit.
Summarized from the full answer at Ftawy · imported
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