The Ruling on Participating in Cooperative Societies
Machine translationRead the Arabic original
Question:
'Amir from Dammam. Shaykh, I have a question about the cooperative society. May you live long, the cooperative society is for five thousand riyals, and they give you one thousand riyals, meaning per month, or we do not know about the work involved. Is there any riba (usury or interest) in it, or anything else, may you live long? May Allah reward you.
Answer:
My brother, the cooperative society and others do not give you a specific amount; rather, they engage in mudarabah (a profit-sharing partnership) with the money they have from people. They use it for buying and selling. If a profit is realized, it is divided between the worker and the owner of the capital according to what they agreed upon. If no profit is realized, the worker receives nothing, and the loss and decrease fall upon the capital and the owner of the capital. Yes.
'Amir from Dammam. Shaykh, I have a question about the cooperative society. May you live long, the cooperative society is for five thousand riyals, and they give you one thousand riyals, meaning per month, or we do not know about the work involved. Is there any riba (usury or interest) in it, or anything else, may you live long? May Allah reward you.
Answer:
My brother, the cooperative society and others do not give you a specific amount; rather, they engage in mudarabah (a profit-sharing partnership) with the money they have from people. They use it for buying and selling. If a profit is realized, it is divided between the worker and the owner of the capital according to what they agreed upon. If no profit is realized, the worker receives nothing, and the loss and decrease fall upon the capital and the owner of the capital. Yes.
Source
قناة «مكة و المدينة»، 10 فتاوى على الهواء - 10 / 07 / 1433هـ _ الشيخ صالح الفوزان — youtube.com (19:52)
The Arabic text is a machine transcription of the audio recording.