Is it Islamically permissible to enter into a partnership where the profit distribution is divided into three parts: one-third for the capital (continuing until the full recovery of the capital), one-third for the capital owner, and one-third for the partner providing effort, with an agreement to adjust the profit percentage to half after the recovery of the capital, and to determine a wage for the partner providing effort due to his role as project manager?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This is a permissible company, but it is not valid to agree that the capital owner acquires half of the capital after recovering the original capital from the expected profit, as this leads to (uncertainty) and Jahala (ignorance) regarding the worker's share. To validate the contract, both parties must agree on a specific percentage of the profit for the worker.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/193372
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- Ftawy
- Original fatwa ID
- 193372
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy