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What is the ruling on loss incurred by two partners in a poultry project if the capital is from one and the effort from the other, and the partner providing the effort was negligent in managing the project, which led to a significant loss of the capital? And should the owner of the capital be compensated in the currency of his country or in Saudi Riyals?

1 min readAlso available in العربية

If the owner of the capital does not authorize his Mudarib partner to pay the money to another person, then the Mudarib guarantees the capital and bears the loss. Likewise, the Mudarib guarantees the capital if its owner authorized him to pay it to another, but he was negligent or defaulted, which led to the loss. As for determining the currency in which the Mudarabah is settled and the loss is calculated, it is the same currency in which the capital was handed over.

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

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