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Is it halal for me to invest Dhs 100,000/- in an event with a 25% return and a security cheque?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
I have a question regarding investment. One company is asking me Dhs 100,000/- for an event they want to do next month. They are earning more than Dhs 65,000/- as profit as per their calculation but I am not sure yet as it will happen next month as the event is still under process and cannot certain what exactly they will get, maybe more or less I am not sure. However they need investment and will provide 25% of what I am investing i.e. Dhs 25,0000/- they are willing to give me profit for my investment in that event along with security cheque of my amount. Is this halal for me or not? Please clarify? Here in UAE they mostly share profit as lump sum. Please clarify at earliest shall I agree or drop it?


(Fatwa: 458/385/B=1433)

In the question mentioned above, as per the Shariah it shall not be lawful to take 25% profit by giving 250000 Dirham. According to Shariah, it is not lawful to earn money by money, until the money is not invested in something and one’s brain is not utilized and hard work is not done for the same, as it is prevalent in business. It is obvious that sometimes in business one avails less profit and sometime more profit while sometime there is no profit at all and the dealing goes equal and sometime it incurs loss. Hence it is earning money by money to take fixed profit by giving money which is open interest and definitely haram and unlawful. Muslim should avoid such earnings.

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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