Investment with fixed returns

Answered according to Hanafi Fiqh by

Q: There is an investment company. The company sells sand for building purposes and transports people in busses. You can choose anyone you like to invest in. I chose of sand, then the chairman gave me form to fill, I filled, and I invested the sum of 100, 000 naira. Then the chairman signed the form that after 13 months I should come and collect 230, ooo naira both my capital and profits. 100, 000 naira my capital and 130, 000 naira is the profits. I shouldn’t collect until on fixed signed date and amount fixed in the form at the beginning. They wouldn’t charge me for any loss or accident when happens during the transaction because they have registered in insurance company, the insurance company will handle any losses. And the amount of profits the chairman of the company wrote down in the form at the beginning is the exactly what l should get after the date of agreement comes. Is this halal? What is your view?


A: This type of an investment is identical to riba (usury).

And Allah Ta’ala (الله تعالى) knows best.


Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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