They agreed to a partnership with unequal capital
Machine translationRead the Arabic original
Fatwa number ( 21594 )
Q: A friend offered me to join him in an existing commercial project that he owns. The man was in need of liquidity, so he said: “Join me as a partner in the project with a certain percentage of the capital, 30%, and you will have from the profits what corresponds to your percentage of the capital, 30% as well. However, the partnership is limited to one full year, and after that, I have the option. He is the same if we want to continue in the same way, and if we want to separate, he will return my capital along with any profits realized, if there are any profits.”
A: If the situation is as described, there is no harm in partnering with the aforementioned person for whatever duration you wish, provided that his work is free from riba (usury or interest); because the original ruling in transactions is
permissibility, except for what evidence indicates is prohibited. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: A friend offered me to join him in an existing commercial project that he owns. The man was in need of liquidity, so he said: “Join me as a partner in the project with a certain percentage of the capital, 30%, and you will have from the profits what corresponds to your percentage of the capital, 30% as well. However, the partnership is limited to one full year, and after that, I have the option. He is the same if we want to continue in the same way, and if we want to separate, he will return my capital along with any profits realized, if there are any profits.”
A: If the situation is as described, there is no harm in partnering with the aforementioned person for whatever duration you wish, provided that his work is free from riba (usury or interest); because the original ruling in transactions is
permissibility, except for what evidence indicates is prohibited. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.