It is not permissible to specify the profit as a known amount in a profit-sharing partnership or other types of partnerships
Machine translationRead the Arabic original
The brother H. A. from Riyadh says in his question: Islamic banks provide what is called variable profit; this means giving a non-fixed monthly profit that ranges between 12% and 17%. Is dealing with this type of profit lawful? Please issue a ruling, may Allah reward you with good.
Answer: Praise be to Allah, and peace and blessings be upon the Messenger of Allah. As for what follows:
Specifying the profit as a known amount in a profit-sharing partnership or other types of partnerships is not permissible; rather, it invalidates the contract. This is because it leads to one partner or partners making a profit while the other loses. The profit must be shared, such as half, or less, or more, by the consensus of the scholars. And success is from Allah.
Answer: Praise be to Allah, and peace and blessings be upon the Messenger of Allah. As for what follows:
Specifying the profit as a known amount in a profit-sharing partnership or other types of partnerships is not permissible; rather, it invalidates the contract. This is because it leads to one partner or partners making a profit while the other loses. The profit must be shared, such as half, or less, or more, by the consensus of the scholars. And success is from Allah.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.