What is the ruling on a partnership between a foreign company and the local government regarding the foreign company's assets, in exchange for allowing it to operate, knowing that the foreign company agrees to this under duress?
It is permissible for guardians to stipulate the participation of foreigners in commercial projects on their lands if it is for a general economic benefit. The government must pay 20% of the project's capital to be a partner and can delegate the work to the foreign company, with profits distributed according to the capital ratio. However, if the government does not pay anything from the capital and stipulates a percentage of the profit in exchange for permitting the work, this is not permissible because the amount of profit is unknown and it constitutes consuming wealth unjustly. Profit is not deserved except through capital, labor, or guarantee.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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