What is the ruling on a transaction that involves investing a sum of money in the foodstuff trade, with the condition of not specifying a fixed interest rate, and an agreement on a monthly percentage of the profits?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This transaction is called or Qirad, and it is a permissible type of partnership, where one party contributes their effort and labor, and the other contributes their capital. The profit is then shared between them according to an agreed-upon, undivided percentage at the beginning of the contract.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/171763
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- Ftawy
- Original fatwa ID
- 171763
- 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