The Ruling on Guaranteeing Profit in a Mudarabah Partnership
Machine translationRead the Arabic original
Question:
This questioner says: A group wanted to participate in a shareholding in a company, so what is the ruling on guaranteeing the profit of our investment in this company?
Answer:
The profit is not guaranteed. The profit may come, or it may not come at all, so the profit is not guaranteed if it is a mudarabah (profit-sharing partnership) involving buying and selling. In that case, there is nothing wrong with it, and mudarabah is a matter of scholarly consensus. The profit is divided between the partners according to what they agreed upon, whether a small or large share. If no profit is realized, they owe nothing. If a loss occurs, it is borne by the capital. However, if this company is in productive factories and a condition is set for some to receive more than others because they work in the workshop or factory, taking this extra in return for their work in addition to their share of the profit, then there is nothing wrong with that. Yes.
This questioner says: A group wanted to participate in a shareholding in a company, so what is the ruling on guaranteeing the profit of our investment in this company?
Answer:
The profit is not guaranteed. The profit may come, or it may not come at all, so the profit is not guaranteed if it is a mudarabah (profit-sharing partnership) involving buying and selling. In that case, there is nothing wrong with it, and mudarabah is a matter of scholarly consensus. The profit is divided between the partners according to what they agreed upon, whether a small or large share. If no profit is realized, they owe nothing. If a loss occurs, it is borne by the capital. However, if this company is in productive factories and a condition is set for some to receive more than others because they work in the workshop or factory, taking this extra in return for their work in addition to their share of the profit, then there is nothing wrong with that. Yes.
Source
نور على الدرب - الفوزان - 02/273 — archive.org (5:18)
The Arabic text is a machine transcription of the audio recording.
