Is it permissible to agree with a merchant to deposit a sum of money with him, and then receive a monthly amount representing my share of the capital after deducting his share of the profits in exchange for his trading activities?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
What you have done is (commenda), which is when a person gives money to another to trade with, and the investor receives a specific, undivided share of the profit, such as half or a quarter. It is not permissible to stipulate a fixed amount of profit for either party.
One of the conditions for its validity is that the Mudarib (the working partner) does not guarantee the capital. If a loss occurs, the رب المال (owner of the capital) alone bears it, while the Mudarib bears the loss of his effort.
Therefore, the agreement with the merchant for a fixed monthly amount in exchange for his investment of the money is a loan with an increment, which is .
Summarized from the full answer at Ftawy · imported
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- Original fatwa ID
- 39711
- Imported
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