Darul Ifta Ibn Masood

Profits not stipulated in a Mudhaarabah partnership

· 29 Rabiʻ I 1443 AH1 min readEnglish

Question

What is the ruling if the profit sharing percentages are not stipulated in a Mudhaarbah partnership between the partners?

Answer

If the Mudhaarabah partnership becomes corrupt as the investor (Rabb-ul-Maal) and investment agent (Mudhaarib) didn’t stipulate and fix the percentages on which the profits will be shared between them, then the investment agent (Mudhaarib) will receive Ujrat-e-Mithl for his work. Ujrat-e-Mithl refers to a salary that employees carrying out a similar type of work (in the same field) will receive in lieu of their services.

References (Arabic / Urdu sources)

References:- Hidaayah Pg.258 Vol.3; Badaa’i –us-Sanaa’i Pg.108 Vol.6

Answered by
Mufti Mohammed Desai
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Source: Darul Ifta Ibn Masood — https://fataawa.co.za/profits-not-stipulated-in-a-mudhaarabah-partnership/
Fatawa SA: https://fatawa.co.za/fatwa/ibnmasood-13510

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