Shari’ah perspective on business opportunities : calculation of end of investment capital

Fatawa Question

[Question One] : Assalaamu Alaykum and Ramadan Mubarak. Another clarification regarding the agricultural investment. If we took investors capital for a period of 10 years, paying dividends on an annual basis (based on profitability), at the end of the 10 year period how do we calculate the value of the investor’s capital in order to refund the capital ? At the end of 10 years the farm will comprise farming assets (building, machinery, tools etc.) and bearing citrus trees. With best regards, thanks and salaams. [Question Two] : Yes it is on lease. Sorry. I should have phrased the question differently. What I am thinking is that land as capital will not suffer loss but money would. So generally speaking, can a partner bring land to a partnership in agriculture ? [Question three] : Assalaamu alaikum Prof. Monzer Thanks for your response. Is it that the land itself has no value in the Musharakah arrangement ? With best regards and salaams. Imtiaz

Fatwa

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Publication Date

2012-05-15

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-732081

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