Is a company that sells shares for $10 and grants a daily profit of 2% of the share's value for 75 days (to become $15) usurious?
There is no contract in Sharia that permits paying money to another person for them to return it after a period with a guaranteed profit, as this is either usury (riba) or corrupt partnerships. The described scenario resembles prohibited loan bonds. A share represents an ownership stake in a company, and its owner participates in profit and loss, whereas a bond represents a debt and a loan, and its owner receives a fixed interest without bearing any loss. Therefore, dealing in these bonds is Islamically prohibited because they are usurious loans. Allah Almighty says: (O you who have believed, fear Allah and give up what remains [due to you] of usury, if you should be believers. And if you do not, then be informed of a war from Allah and His Messenger. But if you repent, you may have your principal – [thus] you do no wrong, nor are you wronged). The Islamic Fiqh Academy has ruled that bonds representing an obligation to pay their amount with an attributed interest are prohibited because they are usurious loans.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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