Is an agreement to give 5% of the project value to a friend, in exchange for using his company's name and documents, permissible in Islamic law? And is this agreement better, or is it better to lease the company's name monthly?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Scholars have differed on the ruling of taking money for sponsorship (price of influence), with various opinions. We have favored its permissibility to the extent of the prevailing wage for such services (ujrat al-mithl). It is not permissible for it to be a percentage of the value of projects or their profits due to ignorance (jahalah) [uncertainty], and the safest approach is for it to be a fixed amount, whether monthly or annually, or according to agreement. Alternatively, the owner of the institution could enter as a partner with his wealth, and thus receive a share of the profit.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/69567
Where this answer came from
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- Ftawy
- Original fatwa ID
- 69567
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy