Q: I am doing an online business. It is an investment business. Investment in shares and money exchange. But I am not an experienced person so I can not deal in shares or money exchage right now thats why there is a company which help people like us. They ask us to deposit some amount in their account and they will purchase shares with it and will return us 3.4% of our amount on daily basis for 100 days. They will not return us principal amount. If I deposit 10$ I will be getting 0.34$ per day for 100 days. There is also a risk factor involved in it. Kindly tell me if this type of business is halal for me or not. I am a needy person and none of my family members are in earing position. So after considering all these facts please answer if this business is halal for me or not?
A: In Islam, it is not permissible to stipulate the profits in proportion to the capital investment. Hence, if 3.4% of the capital is stipulated as profit for hundred days, it will not be permissible. Furthermore to place a condition at the beginning that one will not receive his capital amount (at all nor with the profits nor at the end of the term) is also an invalid condition in shariah. Hence investing ones money in such an investment is impermissible.
And Allah Ta’ala knows best.
(و لا يجوز الشركة إذا شرط لأحدهما دراهم مسماة من الربح) لأنه شرط يوجب انقطاع الشركة فعساه لا يخرج الا قدر المسمى لأحدهما (هداية 2/632)
Mufti Zakaria Makada
Checked & Approved:
Mufti Ebrahim Salejee (Isipingo Beach)