Is the division of cash profits only applicable in a Mudarabah partnership, or does the division include the growth of capital from the initial paid-in capital, taking into account the growth in the project's value and the efforts of the working party?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The lawful profit for a company is anything that exceeds the capital, not merely the revenues. It is determined either by liquidation or by evaluating the project in cash. Whatever exceeds the capital is the profit distributed between the holders and the agent according to the terms of the contract.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/165296
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 165296
- 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