Investments and shares

Q: I would like to enquire regarding the Shar’ee ruling of a certain business scheme that is currently being promoted in many places of this country and in other countries as well. The scheme operates under the name “Qnet.” I will explain how this scheme works through an example: 

Zaid purchases a watch from Qnet for the amount of R40,000. However, this type of watch is normally sold for approximately R1,000 in the general market. The only reason why Zaid purchases this watch at such an inflated price is to gain entry into the Qnet business scheme and start earning profits. 

Zaid then refers others (Bakr, Khalid, and Qaasim) to also purchase a watch from Qnet at a similar inflated price. Once these individuals make their purchases of the watches, Zaid immediately receives a commission for referring them. 

Subsequently, Bakr, Khalid, and Qaasim each proceed to recruit five more individuals to the Qnet scheme. When these new recruits make purchases from Qnet, Zaid, as well as Bakr, Khalid, and Qaasim, respectively, receive further commission based on these purchases. Though Zaid did not make any effort in getting the five more individuals to purchase and join Qnet, he receives a commission from their purchases. 

Each of these five individuals will then get ten more people to purchase from Qnet. When these fifty new people purchase from Qnet, then Zaid, Bakr, Khalid and Qaasim as well as the five individuals respectively will receive commission from the fifty new people. This chain will continue down the line and those on top will continue receiving commission from the transactions that take place at the bottom, even though they do not make any effort. 

Is participation in such a business scheme permissible in Islam?

Q: Please advise if investing in shares in publicly listed companies which sell the following is permissible or not: 

1. A Distribution/Retail business whose main business is pertaining to selling foods, cosmetics, appliances, bakery, butchery (haraam meat also sold) sells alcohol also. 

2. A mining, telecommunications or property holding companies that has conventional bank loans and fixed deposits that earn interest?

Q: Please advise if the following form of investment is permissible.

We purchase a two bedroom apartment in a complex which belongs exclusively to us. Nine other people also purchase two bedroom apartments in the complex. All ten of us then enter into a partnership and agreement (with an agent handling the entire portfolio) that we will all hand over our apartments to the agent for rental. However, the proceeds at the end of the month will be shared equally in the partnership among all ten of us, irrespective of whose apartment was leased out more in that period.

Will such a partnership agreement be permissible and valid?

Q: Are we allowed to use FNB Islamic banking and Al Mabroor profit shares?

Q: I had 2 clients, client A, who wished to buy a property. The client had an agreement with the seller to purchase a property being sold for R900 000. Client A wanted to get bank finance for the shortfall on the purchase price. We advised against it. We spoke to client B, who had R100 000 to invest. We brought both the parties together. Client B agreed to buy 1/9 of the property. Within a month client B agreed to sell his share at R120 000, an agreed of repayment was made and met.

Is the transaction a valid shariah agreement.

Q: I have a furniture trading and manufacturing business. I want to take investment to grow my business. I am offering my prospects 30% to 36% (variable) early profit on their investment if they invest for a minimum 1 year.

Incase of any loss they will have to bear the loss as well. Is this shariah compliant and halaal?

Q: There are too many applications on the internet which ask us to invest in their business like they ask us to purchase their devices and they say they will launch these machines at different places and people will use them and we will share the profit with you. I invested 2000 and they give me daily earning of 200. Is it halaal?

Q: Is it permissible in Islam for a Muslim to trade/invest in stocks and earn an income from the profits every month? Will the earnings be Halaal?

Q: If you had given someone a sum of money to invest in a property but they are now constantly making excuses not to give the money or the profit to you (but you don't know their situation - maybe they are struggling) would that be considered as just a debt or stealing? Does it make their income haraam? For instance, if they are hosting a function, would it be permissible to attend and partake of the food?

Q: Is Islamic investment with Fnb halaal?