The Mudarabah Partnership
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Q: We are a company (......) for contracting and real estate investment. We have agreed with some partners to invest their funds through a mudarabah (profit-sharing partnership) as follows: First: We purchase land and build residential complexes on it, then sell them to citizens for cash or on installment under a sales contract, and the property is not transferred until the buyer pays the full amount. Second: We purchase various cars from one of the showrooms, then offer them for sale to citizens on installment at prices higher than the purchase price. Our share for managing the work and the effort we exert is an agreed-upon limited percentage of the profits, as agreed with the partners. Some of the partners have asked me for the opinion of a reputable scholar from a Sharia perspective; therefore, we hope that you, the honorable scholars, will inform us about this. May Allah guide you and benefit the Muslims with you.
A: What the company is doing, according to what was mentioned in the questioner's question, is permissible in Sharia, as it is one of the forms of mudarabah (profit-sharing partnership) regarding which the jurists have stated the permissibility of dealing in it.
A: What the company is doing, according to what was mentioned in the questioner's question, is permissible in Sharia, as it is one of the forms of mudarabah (profit-sharing partnership) regarding which the jurists have stated the permissibility of dealing in it.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.