Is it permissible to enter into a partnership in a project where part of the capital is a usurious loan, and what are the permissible forms of partnership (money, work, or management)?
It is disliked to partner with a disbeliever or with someone who does not avoid unlawful dealings. This disliking intensifies or weakens depending on the amount of unlawful money involved. It is permissible to partner with a portion of the capital while sharing the profit, or by providing capital under a Mudarabah contract with a specified percentage of the profit. However, making the wage a percentage of the profit in an Ijarah (leasing/hiring) contract is, according to the majority of jurists, a practice that invalidates the contract, because the wage becomes unknown and involves gharar (uncertainty). Some scholars, however, permit it.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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