Is it permissible for a Mudarabah contract to stipulate that the working partner's capital contribution is 7% of the store owner's capital, and that profits are collected monthly, with 7% deducted from them before being split equally? If not, what is the correct arrangement?
The agreement is valid, and there is no problem with it as long as the agreement between you and the store owner is based on a known percentage of the profit, so that the store owner earns more than just his capital.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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