What is the ruling on my searching for investors for a project that will be financed by an interest-based loan, and what is the validity of my receiving a percentage of the company and a cash bonus if I succeed?
The question contains two issues:
The First Issue: The ruling on bringing investors to a company for a financial fee (brokerage): The majority of scholars stipulate that the compensation must be known. Therefore, it is not permissible for it to be a percentage of an unknown amount due to ignorance (uncertainty). If the percentage is from a known capital for the company, there is no problem. If it is a percentage of an unknown profit, it is not permissible according to the majority of scholars. However, some scholars, such as the Hanbalis, permitted it, just as they permitted combining a percentage with a fixed amount.
The Second Issue: The ruling on agreeing to finance an investment with a loan in exchange for a percentage: This agreement is not permissible because stipulating a percentage in exchange for a loan is explicit usury (riba) by consensus. It is not permissible to endeavor to complete this contract, based on the Almighty's saying: ﴿And cooperate in righteousness and piety, but do not cooperate in sin and aggression.﴾ [Al-Ma'idah: 2].
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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