Is it permissible to specify a percentage of profits in a mudarabah (profit-sharing partnership) contract?

The questioner:
May Allah reward you, our Shaykh. We also have with us from Riyadh, the brother Hamud. Peace be upon you and Allah’s mercy. Peace be upon you.

The Shaykh:
And upon you be peace and Allah’s mercy. May Allah keep you safe, Shaykh Salih. May Allah keep you safe.

The questioner:
If you would be so kind, I have a question with two parts. The first part, Shaykh Salih, is that I work in trade, and if a person comes to me and says, “I will put a specific amount of money with you, and I want you to invest it in trade, in halal trade,” and I give him a percentage, for example, five percent, seven percent, or ten percent—a fixed percentage of the profits, not a floating one—is this permissible or not?

The Shaykh:
A shared percentage: if there is a profit, you give him that percentage, and if there is no profit, he has nothing.

The questioner:
Certainly, there is no doubt about that, but when there is a profit, I want to specify that if there is a profit, he gets a percentage of five or ten percent, meaning I stipulate the percentage for him. Is this permissible, Shaykh, or not?

The Shaykh:
Yes, a shared percentage, for example, five percent or ten percent, as you have stipulated. Yes.