What is the ruling on dividing the assets of a Mudarabah company (vehicles, computers, inventory, and exclusive agencies) upon its termination, knowing that the financier believes that the division should be limited to cash profits only?
There is no profit in mudarabah (commenda partnership) until the Rabb al-Mal (capital provider) has recouped their entire capital. Any amount exceeding the original capital is considered profit, which is then divided between the Mudarib (working partner) and the Rabb al-Mal according to their agreement. Upon dissolution of the partnership, the value of assets such as cars, computers, and the like is calculated, and any amount exceeding the initial capital is considered profit. To determine the capital, it must be converted into cash or valued in cash, and the excess over the initial capital is the profit. The Mudarib's contracting with companies for the benefit of the mudarabah falls within his work using the Rabb al-Mal's funds, and he is entitled to the agreed-upon percentage of the profit for this. He is not permitted to take anything from it for himself upon the dissolution of the mudarabah.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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