What is the ruling on agreeing to finance a Mudarabah project with effort from one party and capital from the other, and is the financier entitled to the full percentage of profits if he has not paid the full agreed-upon amount?
The scenario described is a Mudarabah (partnership) that fulfills its conditions: the capital has been handed over to the agent, the profit share for each party has been specified, and the capital is in cash. The investor is entitled to half the profit from the first installment for six months and half the profit from the second installment for one month, because he is entitled to profit by virtue of his capital and the agent by virtue of his labor. If some of the capital is destroyed before the Mudarib (agent) begins work, the Mudarabah remains valid for the remaining capital.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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