Investing in a friends business

Q: Six months ago my businessman friend approached me and told me that he has got a big order from his customer but he doesn’t have enough money to fulfill his order. So he asked me to invest 1 million in his business so that he can complete the order and he would pay me a profit from this order in proportionate to my investment which is around 0.4 million. Order was confirmed and payment was secured. Is this halal for me?

A: The additional requirement here is that both of you should determine the amount of the shares before concluding the deal.

And Allah Ta'ala (الله تعالى) knows best.

 

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)