Title: My question is regarding intrest on investment i just want to know that my organization in which i m working is running different business for the welfare of its own employee it also gives an option to invest its employees money in the business and in june and december each year they review the progress and analyze their profit or loss n then they distribute the profit to all stake holders at the analyzed profit rates in %.my organization doesnt give loan to individuals or banks means all ur money is put directly in to business there is no penalty on withdrwing money at any time n there is no pre fixed profit rates means profit rates keep on variating as audited is this investment HALAL or HARAM

Question: AOA sir my question is regarding intrest on investment i just want to know that my organization in which i m working is running different business for the welfare of its own employee it also gives an option to invest its employees money in the business and in june and december each year they review the progress and analyze their profit or loss n then they distribute the profit to all stake holders at the analyzed profit rates in %.my organization doesnt give loan to individuals or banks means all ur money is put directly in to business there is no penalty on withdrwing money at any time n there is no pre fixed profit rates means profit rates keep on variating as audited is this investment HALAL or HARAM

Answer ID: 27037Posted on: Aug 31, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 1861/1337/L=1431)

If all the conditions mentioned in the question are fulfilled and the profit is fixed as per investment ratio and in case of loss all the participants share it according to capital amount, then such type of investment is lawful.