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Is it permissible for a person to rent out his shop to a foreigner in the name of his sponsor, then transfer the sponsorship to his own name in exchange for a monthly sum, while the shop remains in the owner's name, and without the owner participating in the tenant's trade?

1 min readAlso available in العربية

It is impermissible to take money in exchange for sponsorship (kafala) or a commercial registration, as the state prohibits this, and it entails bringing about benefits and averting harms. The fundamental principle for sponsorship is that it is a voluntary act, for which it is impermissible to take compensation. However, it is permissible to take the actual rent for the shop, provided that it is not a cover for compensation for sponsorship.

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

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