Back to search

What is the legitimate Islamic distribution of profits among three partners, if the first partner contributes effort and management and 70% of the capital, the second partner contributes effort and 20% of the capital, and the third partner contributes only 10% of the capital?

1 min readAlso available in العربية

The described transaction combines partnership (Sharika) and profit-sharing (Mudaraba), and the condition of an additional share of the profit for the worker is a matter of scholarly disagreement.

Ibn Qudamah said: - If someone gives a thousand [dirhams] as Mudaraba and says, "Add a thousand from your own money, trade with both, and the profit between us is two-thirds for you and one-third for me," then it is permissible, and it is a partnership and a Qirad (Mudaraba). - If the worker has a share of the profit that exceeds half, it is permissible. If it is less than half, it is not permissible.

Al-Mardawi said: - The transaction is not valid if the worker's share is equal to the profit of his own capital, because that is mere entrustment (Ibdha'). Nor is it valid if it is less than that, because he would be taking from his partner's profit without work.

Therefore, the two working partners should have an additional share of the profit, by their agreement, beyond their shares of the capital. Then, the remaining profit should be divided according to the proportions of their capital.

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

Read the full answer on Ftawy