Question
A Muslim brother in Canada wanted to partner with a non-Muslim Canadian in purchasing a property for investment, by renting it out and benefiting from its proceeds. The Muslim will pay one-third of the property's price in cash to the property owner, while the Canadian will go to the bank to take a loan for two-thirds of the property's price, and he will pay the interest to the bank. Is this partnership valid according to Sharia? If it is valid, will the profits be divided in the ratio of one-third to two-thirds, or will it be in the ratio of one-third to two-thirds plus the interest?
Answer
I say, and with God's success: the company is valid, and the Muslim earns one-third, while the non-Muslim earns two-thirds, and God knows best.