Skip to main content

Investing money in a company that will give him 3% of his capital is it Halal Or Haram

Related image

Praise be to Allah
Firstly:
it is not permissible, when forming a partnership, to agree that the owner of the capital will get a certain percentage of his capital, or a set amount. Rather his share should be a percentage of the profit, such as saying: You will get 3% of the profit.
But if it is said to him: You will get 3% of your capital, or you will get one hundred and fifty dollars, this renders the partnership invalid.
If, combined with that, his capital is guaranteed (and he will not lose any of it), as you mentioned, then this transaction is a riba-based loan.
Ibn Qudaamah (may Allah have mercy on him) said:
If the share of one of the partners is set as a specific amount of money, or a sum of money is set along with his share – such as if he stipulates that he will have a percentage plus ten dirhams, the partnership becomes invalid. Ibn al-Mundhir said: All of the scholars from whom I learned are agreed that the mudaarabah partnership is invalidated if one or both of them stipulate that they will have a certain amount of money. Among those from whom we learned that are Maalik, al-Awzaa‘i, al-Shaafa‘i, Abu Thawr and Ashaab al-ra’y. End quote.
Shaykh al-Islam Ibn Taymiyah said: 
If it stipulates in the mudaarabah contract that the owner of the money will get a certain amount of money, this is not permissible, according to scholarly consensus. That is because transactions should be based on fairness, and these transactions are a kind of partnership, and it can only be a partnership if each partner gets a percentage, such as one-third or one-half. If one of them is given a specific amount, that is not fair, rather it is unjust. End quote from Majmoo’ al-Fataawa, 38/83 
The Standing Committee was asked about two men, one of whom gave the other a sum of money with which to do business for him, and they agreed that he would give him 3% of the capital as a profit each month. 
They replied: 
Your giving the money to the trader to do business with it and his giving you a set amount, three percent of the money, is not permissible, because it is a kind of guaranteed profit. End quote fromFataawa al-Lajnah al-Daa’imah, 14/318 
They were also asked about a company that takes money from people to do business with it, and gives them a share of 30 percent of the capital every year, and claims that it makes a profit of 100 percent. 
They replied: 
If the company mentioned gives the partners a set, guaranteed amount of profit, this transaction is not permissible, because it is riba. The transaction which is permissible is that in which each partner is given a share such as one-quarter or one-tenth, which increases or decreases according to what happens. End quote from Fataawa al-Lajnah al-Daa’imah, 14/321 
Conclusion: it is not permissible to invest money in the manner asked about.
Secondly:
In a valid type of partnership, it is essential to know the nature of the field in which the money will be invested, and that it is permissible. It is not permissible for the money to be invested when it is not known in which field it will be invested; perhaps it will be invested in riba-based banks or gambling operations, or other unlawful things.
It is not permissible for anyone to let his love of wealth make him try to accumulate wealth in any way, even if it is prohibited. The Prophet (blessings and peace of Allah be upon him) said: 
“The Holy Spirit (Jibreel) has inspired to me that no soul will die until it has completed its appointed term and received its provision in full, so fear Allah and do not be desperate in seeking provision, and no one of you should be temped to seek provision by means of committing sin if it is slow in coming to him, for that which is with Allah can only be attained by obeying Him.” Narrated by Abu Na‘eem in al-Hilyah; classed as saheeh by al-Albaani in Saheeh al-Jaami‘, no. 2085. 
And Allah knows best.


Comments

Popular posts from this blog

A Saudi Family burst into tears at the Airport on the farewell of their Housemaid

Housemaids, your servants, and workers are not just workers, they are also human beings with complete feelings, emotions and crave for love as much as we do. Some people are so good that the people serving or working for them feel pleasure in doing so, and never leave. Money is not everything, the respect is. When a housemaid serves a family for a long time she becomes the part of that family. The bond between the family and housemaid cannot be defined easily. A similar incident happened in Saudi Arabia. A Saudi family bid farewell to their maid in tears and the scene went quite emotional at the airport. A Saudi journalist Khalid Al-Zaidan shared a video on his Twitter account which showed a Saudi Family bidding farewell to their maid who had been with them for 33 years. This emotional video showed that three generation of the family gathered to bid farewell to their Domestic worker at Riyadh airport. This video gained a lot of attention and appreciation from the p...

A young student died during final exam in saudi arabia

A meritorious Saudi student died after falling unconscious twice - first in his class while writing his final exam and then, while being taken to home in a car arranged by the school. Mu'ath Muslim Salloum al-Awfi, a student at Qais bin Saad Al Ansari high school in Madinah, died of natural causes, says an Al Arabiya report. The death of their son has left the parents shocked and devastated. Mu'ath's father was quoted by Al Arabiya as saying that his son did not suffer from any disease, and that the last thing he did when he left home was ask his mother to pray for him. Mu'ath was an amiable boy. He was fond of cars and collected their pictures, while dreaming of success, the report added. Nasser Abdul Karim, head of the public administration for education in Madinah, paid condolences to the student's family. School principal Mahal al-Awfi told Al-Arabiya, "Mu'ath was in good health and did not suffer from any disease, but he felt ti...

Muslim Woman Uses Abaya to Save Burning Man’s Life

A Muslim woman used an Islamic robe to save a burning man’s life when he caught fire in a truck crash, by using it to put out the flames. “I was rattled to see the two burning trucks and got shocked when I saw a man on fire screaming for help,” Jawaher Saif Al Kumaiti, an Emirati Muslim woman, told Khaleej Times on Sunday, October 1. “I requested my friend – who was with me in my car – to give her abaya and asked her to stay inside.” Al Kumaiti was driving home after visiting a friend in hospital when she saw two trucks burst into flames and heard the victim shouting for someone to save him. One of the drivers, Harkirit Singh, managed to escape from his burning vehicle – but not before his clothes caught fire. “I immediately rushed to the driver, put out the flames and covered him with my friend’s abaya. The 22-year-old young woman persuaded her friend who was a passenger to take off her abaya then leaped out of the car and used it to put out the flames. “I calmed him...