Is the animal investment scheme of Al- Mabroor compliant with the Shariah?

Answer

No, it is not compliant. It is in conflict with the Shariah, hence investing in this scheme is not permissible.

The fundamental basis which renders the investment haraam, is that the 'profit' is in reality riba (interest). The funds which the investor invests are in reality a loan to the investment fund. The investor does not acquire a genuine share of the assets (animals in this case). For example if an animal costs R100,000, and the investor invests R50,000, then in terms of a valid Islamic Partnership, 50% of the animal is his property. But in the Al Mabroor Investment scheme, this is not so.

If he invests R100,000, then the whole animal belongs to him. In terms of the Shariah, he may forthwith dissolve the partnership and take his animal. But Al Mabroor does not allow investors to take their animals which in Shar'i terms belong to them. Al Mabroor will only pay a dividend which in reality is riba - interest paid on the loan which is fallaciously termed 'capital investment'.

In the event of the whole animal belonging to the investor, the contract will cease being a partnership (Shirkat). It will become Mudhaarabah with a whole set of different rules for which the scheme does not cater. In short, the entire Al Mabroor scheme is a hopeless mass and mess of baatil and faasid stipulations.

The investor does not become a partner in the assets. He merely receives a 'profit' for his investment. This 'profit' is riba paid on the loan which in reality his 'investment' is. The entire contract is a western capitalist style paradigm which is cluttered with faa sid (Islamically corrupt) terms and conditions. We have mentioned the Shar'i objection in brief. A more detailed comment is available on request.