Question: Is a silent partnership permissible?

Answer: A Silent partnership (Mudarabah) is a type of partnership where one partner outlays his wealth and the other offers his skills on the condition that they share the profits according to mutual agreement.

It should be stated as to how the profits will be shared in terms of percentage. A fixed amount (in Rands/Dollars) of profit cannot be pre stipulated.

If there are no profits or they suffer a loss, then the person who is working will not receive anything and he will not have to pay any compensation for the loss. [Bahishti Zewar 238]

And Allah Knows Best

Yusuf Moosagie 

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