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The question

Is investing in a food company for a 10% monthly profit, with the percentage increasing every two months, permissible or impermissible, in order to avoid falling into usury?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

It is not permissible for your share to be 10% of the capital, because that is usury (riba). Rather, it is permissible for it to be from the profit. This is called (profit-sharing partnership), and its conditions are that the profit be a percentage of the profits, not of the capital, and that the capital not be guaranteed. So, if the profit were 20,0 from a capital of 100,0, then taking 10% of the capital (10,0) is usury. However, taking 10% of the profits (2,0) is permissible.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
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Ftawy
Original fatwa ID
39633
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy