Is it permissible to finance an advertising and public relations company with a sum of money in exchange for a percentage of the total sales profit, while the financier bears the risk of the venture?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This transaction combines a partnership and a temporary (commenda) for a specified period and a known percentage of the profit. This is Islamically permissible, as stated by Ibn Qudamah. Specifying a definite period for the Mudarabah is permissible according to the preponderant opinion among scholars. As for the statement, "the financier does not bear the risks of management," if it means that the capital is guaranteed or that the financier does not bear losses, then this is not permissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/169011
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- Ftawy
- Original fatwa ID
- 169011
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- . 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.
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- Read the full answer on Ftawy