The Ruling on the Profits of Companies in Which the Government Guarantees a Percentage of the Profit
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Question:
Some joint-stock companies have the government guarantee them a percentage of the profit, 15%. Is the profit that a shareholder receives from these companies lawful, or does it contain some element of riba (usury or interest)?
Answer:
There is nothing wrong with it. The assistance the government provides to people so that they may be active in projects, so that they do not incur losses, and so that they continue in what benefits society, is assistance from the public treasury. It falls under the category of transactions.
This assistance to the company so that it becomes strong, active, and continues, just as what is given to farmers, or to others, or to merchants so that they bring in beneficial capital, where the profit is small, all of this benefits the Muslims and does not contain riba (usury or interest).
Some joint-stock companies have the government guarantee them a percentage of the profit, 15%. Is the profit that a shareholder receives from these companies lawful, or does it contain some element of riba (usury or interest)?
Answer:
There is nothing wrong with it. The assistance the government provides to people so that they may be active in projects, so that they do not incur losses, and so that they continue in what benefits society, is assistance from the public treasury. It falls under the category of transactions.
This assistance to the company so that it becomes strong, active, and continues, just as what is given to farmers, or to others, or to merchants so that they bring in beneficial capital, where the profit is small, all of this benefits the Muslims and does not contain riba (usury or interest).
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.