Equity money and terms of interest

Fatwa ID: 02153

Answered by Molana Eunus Ali

Question:

Assalam u Alaikum:

It has been immense pleasure to reach you may Allah grant our prayers.

Dear, There is condition which frustrate me with brainstorming outcomes. If I invest on something and practically do not strive diligently to earn profit but just have to wait and become equal partner in profit and loss. Though it is not one side deal I am liable to loss as well. What will be your decision over this type of trade. Is this would be treated as "HALAAL" OR "HARAAM".

Your valuable information and keen decision will be highly appreciated and would take effective notice. In Sha Allah

Answer:

Bismillah

Allah states in the Quran, “Allah has permitted transactions and has forbidden riba(interest)” (Surah Al Baqarah v.275)

In the above mentioned scenario, if the investment does notfit the criteria of Qimar(gambling)it will be permissible to make such investments.

In the Hoy Quran Allah subḥānahu wa ta'āla (glorified and exalted be He) has said:

‘O believers!  Wine and gambling and idols and arrows are all works of Shaitan, so avoid them so that you may get salvation. Shaitan only wants hostility and hatred to come between you through wine and gambling, and to prevent you from remembering Allah subḥānahu wa ta'āla (glorified and exalted be He) and Salah.’  (Surah Al Maaidha v.90 –v.91)

In a nutshell, ‘Gambling’ is the waging of ones wealth with the possibility of gain or total loss. The gain of one person is dependent upon the loss of the other. (Ma’ariful Quran, Volume 1, Page 548-550)

Only Allah knows best

Written by Eunus Ali

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

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