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23 / 04 / 2026
Conditioning a Common Percentage in Profit in Mudarabah
A shop owner wants to expand his business and is looking for a financial partner to contribute an amount of (3000 D) in exchange for a fixed percentage of the profits, which is 30% annually paid in one installment based on the principle of Mudarabah. Is this arrangement in the partnership permissible?
Answer
I say, and with God's success: Speculation is a type of partnership, and the condition for its validity is that the profit is a common share, such as 50%, for example, not a specific amount. The mentioned form is permissible if it meets this description, and God knows best.
