Is it permissible to invest in a company that sets profits at a rate of 5% annually?

Question:
The questioner says: I have a sum of money that I deposited in an investment company. This investment is monthly and annual, and they said the company's profits are expected to be six percent or five percent. Is this investment permissible in this form?

Answer:
Setting the profit is not permissible. Rather, in a mudarabah (profit-sharing partnership), one buys and sells, and the profit may or may not be realized; it may increase or decrease. This is in the hands of Allah, Glorified and Exalted is He. As for setting the profit for the month or the week at such and such, this is not permissible. The mudarabah is subject to increase and decrease. The profit in a mudarabah is subject to increase and decrease, or it is subject to it also because there may be no profit. Allah knows best. Yes.