The Majlis Archive

Finance - Banking - Business The Majlis Vol 21 No 01, p.4

Does the Shariah fix a profit margin? Is there any criterion for fixing the margin of profit?

Question

Does the Shariah fix a profit margin? Is there any criterion for fixing the margin of profit?

Answer

The Shariah does not fix a limit on profit margin. The criterion is to abstain from exploitation. This is left to the individual's conscience and discretion. Every person is required to consult his conscience, use his discretion and fix his own profit margin. This issue belongs to the moral code of Islam. Fear for Allah Ta'ala and the accountability in the Aakhirah regulate issues of moral import.

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The Majlis Vol 21 No 01
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