What is the ruling on a partnership where capital is from one party and effort is from another, and does the party providing the effort share in profit and loss even though he possesses no capital, and are profits withdrawn immediately or added to the capital?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
What the questioner mentioned is called or Qirad, and it is permissible. For its validity, it is stipulated that the profit between the two parties be shared according to the agreement. In the event of a loss, the loss of the capital provider is from his capital, and the loss of the Mudarib (the worker) is only the loss of his effort and work. As for your profits, it is permissible to keep them within the partner's funds along with their profits at the time of inventory, provided he agrees; otherwise, they must be withdrawn.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/35086
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 35086
- 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