What is the ruling on pure Mudarabah (profit-sharing investment)?

General Chapter

Al-Mughni

Book of Partnership

Book 18 · Issue 2 · Bab 1

Open in Qurani

Primary text

There is scholarly consensus, as reported by Ibn al-Mundhir, that the working partner (Al-'Amil) can stipulate a known fraction of the profit, such as one-third or one-half, as his share. The working partner is entitled to profit due to his labor, thus permitting any agreed-upon share, small or large, analogous to wages in leasing or a share of the harvest in sharecropping.