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The question

Is it permissible to enter into a partnership where the first party fully funds the project, and the second party – who works in the project – pays their share of the capital from their future profits?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

This transaction can be rectified by the questioner borrowing his share of the capital from his friend before the partnership agreement is concluded. In this case, combining (profit-sharing) and partnership becomes valid, as both parties share in the capital while one party exclusively manages the work. This is considered correct according to the preponderant opinion. Alternatively, the transaction can be structured as a Mudarabah, where a person provides funds for another person to trade with, and the profit is shared between them according to their agreement.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
186223
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.
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Read the full answer on Ftawy