Can I Invest in a Textile Company for a Promised Amount Every Month?


Hanafi Fiqh

Answered by Shaykh Faraz Rabbani

Question

I want to invest in a  company which promises to give a set amount every month? Is it permissible for me to use according to shariah? Is this considered to be the interest? Or profit. Please, let me know. Here nobody is talking about loss. Only profit. That’s why I am confused. 

Answer

Walaikum Assalam,

I hope you’re doing well, insha’Allah. The permissibility of investments depends on the details of the investments.

However, the basis is that investments are permissible when the return is a percentage of profits, not a fixed amount, and loss is shared to the extent of investment.

Please find related answers in the SeekersGuidance Answers – www.seekersguidance.org.

As such, find our course on Money Matters here.

And Allah is the giver of success and facilitation. 

[Shaykh] Faraz Rabbani 

Shaykh Faraz Rabbani spent ten years studying with some of the leading scholars of recent times, first in Damascus and Amman, Jordan. His teachers include the foremost theologian of recent times in Damascus, the late Shaykh Adib al-Kallas (may Allah have mercy on him), and his student Shaykh Hassan al-Hindi, one of the leading Hanafi fuqaha of the present age. He returned to Canada in 2007, where he founded SeekersGuidance to meet the urgent need to spread Islamic knowledge–both online and on the ground–in a reliable, relevant, inspiring, and accessible manner. He is the author of Absolute Essentials of Islam: Faith, Prayer, and the Path of Salvation According to the Hanafi School (White Thread Press, 2004.) Since 2011, Shaykh Faraz has been named one of the 500 most influential Muslims by the Royal Islamic Strategic Studies Center.