What is the ruling on the following transaction: I took a sum of money worth one million Iraqi dinars from ten people, at a rate of one hundred thousand from each person, and I proceeded
Machine translationRead the Arabic original
The questioner: May Allah accept from you, O Shaykh. Well, my first question.
The Shaykh: Go ahead.
The questioner: May Allah increase your virtue. There are people who have money invested with me, specifically around one million dinars, meaning one hundred thousand Iraqi dinars for each person.
The Shaykh : Yes.
The questioner: That is fine, my sir.
The Shaykh : Okay.
The questioner: And I give them monthly. I have it invested with the Imams of Islam, who are students of your presence, such as Shaykh Mahmoud andThe Shaykh : Muwaffaq, who work in it in nutrition materials, and they give me in the month around twelve thousand Iraqi dinars as interest/profit on the money. And I give to the person who brought me one hundred thousand, ten thousand, and I take from him two thousand dinars. I want the opinion of the Shari'ah on this?
The Shaykh: Well, what if there is a loss?
The questioner: And he told them, the Imam himself told them, this project is subject to profit and loss, meaning the people are on notice, the people are aware.
The Shaykh: Well, if there is a loss, what happens?
The questioner: By Allah, they, meaning they are satisfied with it. It has been a year we have been working this way.
The Shaykh: May Allah guide you. Take and give with me.
The questioner : Yes, please go ahead.
The Shaykh: This is a ribawi transaction, that you give a fixed profit.
The questioner: It is not fixed, O Shaykh. One month ten, one month nine, one month nine and a half, one month ten and a half, according to the profit that the Shaykh gives me.
The Shaykh: Well, and the loss? May Allah guide you.
The questioner: He did not tell them that there is loss and profit in it.
The Shaykh: My brother, I am not the one who told them.
The questioner: Yes.
The Shaykh: I want [to know] if the capital is lost.
The questioner: Yes.
The Shaykh: What happens to the capital?
The questioner: By Allah, if it is lost, it is lost.
The Shaykh: Is this the reality?
The questioner: Yes, of course.
The Shaykh: Then what is your question?
The questioner: This is a question, meaning, is it halal or haram?
The Shaykh: My brother, there is a type of transaction called mudarabah.
The questioner: Yes.
The Shaykh: A rich man gives a poor man one thousand dinars.
The questioner: Yes.
The Shaykh: One million dinars.
The questioner: Yes.
The Shaykh: He says, take it and trade with it.
The questioner: Yes.
The Shaykh: And the profit is shared equally, in thirds, or otherwise.
The questioner: Yes.
The Shaykh: If there is a profit, and if there is a loss, the capital is lost.
The questioner: Yes.
The Shaykh: As for giving him a million and saying, I do not know except for the million, and I get half or a third or a quarter of the profit, this is gambling, it is not permissible. And this depends on what you agreed upon. If you agreed that profit is with loss and loss is with profit, then this is a Shari'ah mudarabah. But if the owner of the money is given a fixed profit or a percentage regardless of whether there is a loss, then the loss must be shared in the work that he guarantees him. This is riba, it is not permissible.
The questioner: The loss is borne by both parties, O Shaykh, the trader and the one who gives the money.
The Shaykh: That is it, my brother. I tell you, this is prescribed and this is not prescribed.
The questioner: All right.
The Shaykh: But on what basis? I do not know.
The Shaykh: Go ahead.
The questioner: May Allah increase your virtue. There are people who have money invested with me, specifically around one million dinars, meaning one hundred thousand Iraqi dinars for each person.
The Shaykh : Yes.
The questioner: That is fine, my sir.
The Shaykh : Okay.
The questioner: And I give them monthly. I have it invested with the Imams of Islam, who are students of your presence, such as Shaykh Mahmoud andThe Shaykh : Muwaffaq, who work in it in nutrition materials, and they give me in the month around twelve thousand Iraqi dinars as interest/profit on the money. And I give to the person who brought me one hundred thousand, ten thousand, and I take from him two thousand dinars. I want the opinion of the Shari'ah on this?
The Shaykh: Well, what if there is a loss?
The questioner: And he told them, the Imam himself told them, this project is subject to profit and loss, meaning the people are on notice, the people are aware.
The Shaykh: Well, if there is a loss, what happens?
The questioner: By Allah, they, meaning they are satisfied with it. It has been a year we have been working this way.
The Shaykh: May Allah guide you. Take and give with me.
The questioner : Yes, please go ahead.
The Shaykh: This is a ribawi transaction, that you give a fixed profit.
The questioner: It is not fixed, O Shaykh. One month ten, one month nine, one month nine and a half, one month ten and a half, according to the profit that the Shaykh gives me.
The Shaykh: Well, and the loss? May Allah guide you.
The questioner: He did not tell them that there is loss and profit in it.
The Shaykh: My brother, I am not the one who told them.
The questioner: Yes.
The Shaykh: I want [to know] if the capital is lost.
The questioner: Yes.
The Shaykh: What happens to the capital?
The questioner: By Allah, if it is lost, it is lost.
The Shaykh: Is this the reality?
The questioner: Yes, of course.
The Shaykh: Then what is your question?
The questioner: This is a question, meaning, is it halal or haram?
The Shaykh: My brother, there is a type of transaction called mudarabah.
The questioner: Yes.
The Shaykh: A rich man gives a poor man one thousand dinars.
The questioner: Yes.
The Shaykh: One million dinars.
The questioner: Yes.
The Shaykh: He says, take it and trade with it.
The questioner: Yes.
The Shaykh: And the profit is shared equally, in thirds, or otherwise.
The questioner: Yes.
The Shaykh: If there is a profit, and if there is a loss, the capital is lost.
The questioner: Yes.
The Shaykh: As for giving him a million and saying, I do not know except for the million, and I get half or a third or a quarter of the profit, this is gambling, it is not permissible. And this depends on what you agreed upon. If you agreed that profit is with loss and loss is with profit, then this is a Shari'ah mudarabah. But if the owner of the money is given a fixed profit or a percentage regardless of whether there is a loss, then the loss must be shared in the work that he guarantees him. This is riba, it is not permissible.
The questioner: The loss is borne by both parties, O Shaykh, the trader and the one who gives the money.
The Shaykh: That is it, my brother. I tell you, this is prescribed and this is not prescribed.
The questioner: All right.
The Shaykh: But on what basis? I do not know.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.