Temettüdür

Temettüdür is a term used in Islamic finance and law to refer to the practice of distributing profits from an investment or business to the owners or shareholders. The word itself is derived from the Arabic root "mata'a," which means to enjoy or benefit from something. In essence, temettüdür signifies the tangible returns or earnings that accrue to an individual or entity from their capital or labor.

This concept is particularly relevant in the context of Sharia-compliant investments. Unlike conventional finance where interest (riba) is forbidden, Islamic finance emphasizes profit-sharing and equity-based models. When a business or investment generates profit, a portion of that profit is distributed as temettüdür to those who have contributed capital or expertise. The specific method and percentage of distribution are typically outlined in partnership agreements or company bylaws, adhering to Islamic legal principles.

Temettüdür can manifest in various forms, such as direct cash payments, additional shares, or reinvestment in the business which indirectly benefits the owners. The principle behind it is to ensure that wealth is generated and distributed in a manner that is considered ethical and just within Islamic jurisprudence. It encourages participation and shared risk and reward, fostering a sense of community and mutual benefit among investors and stakeholders.