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Is it permissible to enter into a partnership where the first party fully funds the project, and the second party – who works in the project – pays their share of the capital from their future profits?

1 min readAlso available in العربية

This transaction can be rectified by the questioner borrowing his share of the capital from his friend before the partnership agreement is concluded. In this case, combining Mudarabah (profit-sharing) and partnership becomes valid, as both parties share in the capital while one party exclusively manages the work. This is considered correct according to the preponderant opinion. Alternatively, the transaction can be structured as a Mudarabah, where a person provides funds for another person to trade with, and the profit is shared between them according to their agreement.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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