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Is it haram or halal to invest in a company…..

Q:

hello,

I am going to invest US dollars in a company,  for a fixed period of time, in return the company will pay me 0-40% profit on the basis of daily returns they get or whatever they do. After certain period of time I can withdraw my money is this halal or haram. or its a mudarbah contract.

A:

Salam Alaikum

It’s good to see you don’t want haram or unlawful money in your life…

If you have given wakala to that company (or you have made them your agent) to do any legal(halal) business activity and in return, they will pay you the profit according to fix percentage. Then it’s legal and you have the right to withdraw your money and make the contract void.

The above-mentioned contract is mudarbah.

This is contrary to when someone gives his money as a loan and then he wants interest although on a fixed percentage. This would be haram.

Regards

Syed Asad Jamal Zaidi