Q 1: We are several brothers and we have a
which has been established for many years now. When I was an undergraduate, I did not work in the company and did not know anything about the transactions my brothers made. A few months ago, after graduation I started to work with them. However, I had some doubts about the company's transactions; I do not know if they are lawful or not. The transactions are as following: 1- Our company which I will refer to as (A) had a partnership with another company. They both opened a mega market where music cassette tapes, beer and tobacco are sold. They do not sell many of these items so they do not affect the profits so much. 2- Our company (A) entered in a partnership with other companies and (Part No. 14; Page No. 294) formed another company (B). Our Company (A) owns 16% of the shares of the new company (B). Company (B) established a new factory with a large capital and had to take loans from the bank with interest. 3- Our company (A) had a partnership with some other people who established another factory. After defining the capital to be invested in this factory, the partners agreed that our company (A) would finance this project in return for specific interest. 4- Our company has run up an overdraft in many transactions. This means that when our company draws all its bank deposits, the bank allows it to draw from the bank's money in return for specific interest. 5- Our company purchases and sells shares. These shares include bank shares and shares of some Saudi stock companies which involve usurious transactions and purchases shares, bank shares and shares of other companies outside
Saudi Arabia which it buys and sells.
6- We also have a store for electric equipment which sells videos, TVs, cassette recorders, fridges and other goods. (Part No. 14; Page No. 295) 7- We have a restaurant where water pipes and cigarettes are served. 8- We have a partnership in an amusement park which yields a great deal of profit. The profit of all such transactions are mixed with the profit of our original company. Is our company and its profit unlawful?
the profit which company (A) generates from selling music cassettes tapes, liquor and tobacco is unlawful.
it is unlawful for company (A) and company (B) to have a partnership of any percentages because they will establish this partnership with capital that is taken from the bank with interest and because they are using usurious loans to set up the factory.
it is unlawful for company (A) to finance a factory in return for interest.
it is unlawful for company (A) to run up an overdraft with interest.
it is unlawful for company (A) to have shares in a joint stock company that runs usurious transactions.
it is unlawful to deal in videos and TV sets and earn money from that by company (A).
selling cigarettes and the like and the profit that is generated from this is unlawful. (Part No. 14; Page No. 296)
entering into a partnership in an amusement park by company (A) and the profit that is generated from this is unlawful. According to all that is mentioned above, it becomes clear that this company is involved in many unlawful transactions and its profit from this work is unlawful. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.