Mufti Online — Madrasah Ta'leemuddeen

Investing in a friends business

· 4 Rabiʻ I 1439 AH1 min readEnglish

Question

Six months ago my businessman friend approached me and told me that he has got a big order from his customer but he doesn’t have enough money to fulfill his order. So he asked me to invest 1 million in his business so that he can complete the order and he would pay me a profit from this order in proportionate to my investment which is around 0.4 million. Order was confirmed and payment was secured. Is this halal for me?

Answer

The additional requirement here is that both of you should determine the amount of the shares before concluding the deal.

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

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/23298
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