19 Ramadan 1440

I invested in a mining company.the company have daily fixed profits percentage,but with the condition that at any time the company has the right to Change the commissions,so please is this kind of business agreement halal in islam.can I invest in the company?

By Admin
In Halal/Haram Matters
Feb 16th, 2019
0 Comments
319 Views

ANSWER:

Halal investments must have few conditions in order to be legit.

It must be based on loss/profit basis. This means that it can lose part of the capital or all of it as in the case of a fire or drowning of the ship etc. 

The profit must be a percentage and not a fixed amount of money. This means that it is variable and not fixed.

The percentage agreed upon should be from the profit and not from the capital. Giving profit from the capital invested is riba. When you inject money, you should know what is your share from the the capital of the company so that when you leave, the company’s value is evaluated and you are given the price if your share. However, this is not a real partnership when they can buy you off wherever they want! 

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