What is the ruling on mudarabah (a profit-sharing partnership)?
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Question:
The questioner says: I gave another man a sum of money so that the second man would plant a vegetable plot, and he would have a quarter of the profit, and if the farm lost money, he would have nothing. What is the view of Islam on this?
Answer:
Yes, this farming arrangement is permissible in Islam. The Prophet (peace and blessings be upon him) made a deal with the people of Khaybar to farm it for half, meaning half for the Muslims and the rest for them. Is there any harm in that? No.
The questioner says: I gave another man a sum of money so that the second man would plant a vegetable plot, and he would have a quarter of the profit, and if the farm lost money, he would have nothing. What is the view of Islam on this?
Answer:
Yes, this farming arrangement is permissible in Islam. The Prophet (peace and blessings be upon him) made a deal with the people of Khaybar to farm it for half, meaning half for the Muslims and the rest for them. Is there any harm in that? No.
Source
قناة «العلامة الدكتور صالح الفوزان»، ما حكم المضاربة؟ للشيخ الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.