| Question ID 4579 - Business Investment - 2019-01-22 03:00:02 |
| Can one invest in Term Deposits (Fixed Period investment) in an Islamic Banking Bank which is located in a Gulf Country, the deposits return a variable profit after every month and the profit is declared at the end of the month.
The bank is jointly owned by Government organisations + Shareholders which are institutions from different countries (Mainly in Gulf).
The bank says the following;
-Based on the concept of mudarabah
-The depositor provides funds as ‘rabb-ul-maal’ and bank invests these funds as ‘mudarib’
-Based on this relationship, the depositors and bank become beneficiaries of the profit earned
-When the joint investment pool earns profit, it is distributed in a pre-agreed ratio between depositors and bank
-Profit at competitive rates credited to your account at maturity of the deposit
-Profit rates announcement at the beginning of each month for the month passed |
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Answer:- According to what you have written, it is allowed.
Wassalam
Mohammad Al-Musawi
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