Is it permissible for a Muslim to enter into a partnership contract with a Jew or a Christian?
General Chapter
Al-Mughni
Book of Partnership
Primary text
Imam Ahmad permits partnering with a Jew or a Christian, provided the Muslim is the one managing the assets and transactions, as the non-Muslims are known to engage in usury (Ribā). This view is shared by Al-Hasan and Ath-Thawri. The supporting evidence is a narration from 'Ata' that the Messenger of Allah (peace be upon him) prohibited partnering with Jews and Christians unless the buying and selling transaction is conducted by the Muslim. The reason for the permissibility, when managed by the Muslim, is that the objection stems from their dealing in usury, wine, or swine, which is negated when the Muslim oversees the transaction. Furthermore, the Prophet (peace be upon him) transacted with them, even pawning his armor to a Jew for barley and accepting hospitality from another.
Supporting text
Imam Al-Shafi'i disliked partnering with them absolutely, citing a narration from 'Abdullah ibn 'Umar that he disliked a Muslim partnering with a Jew, with no known dissent among the Companions at the time. They argue that the wealth of Jews and Christians is not pure because they deal in wine and usury. The opinion of Ibn 'Abbas against partnering with them is supported by his reasoning that they engage in usury, which is illicit. This view is held as one opinion among the Companions that did not become widespread. The argument concerning impure wealth is refuted by the Prophet's dealings with them, and regarding previously acquired prohibited items, their price remains permissible due to their belief in its lawfulness, as affirmed by 'Umar ibn Al-Khaṭṭāb.