Qirad (Mudaraba) — Profit-Sharing Partnership

INTENSITY MARKERS:
[M] = Fard / Wajib (Obligatory — must do) | [1] = Sunnah Mu'akkadah / Highly Recommended | [2] = Sunnah / Recommended | [3] = Mustahab / Virtuous / Commendable | [H] = Haram (Forbidden — must not do) | [h] = Makruh (Discouraged — should not do) | [P] = Mubah (Permissible — neutral)

✅ What to Do

[1]Enter into a profit-sharing agreement where one provides capital and the other labor.

[M]Agree on the profit-sharing ratio (e.g., 50/50, 60/40) before starting.

[2]The worker (mudarib) must act as a trustworthy manager.

[M]Losses are borne by the capital provider (rabb al-mal) unless the mudarib is negligent.

[2]Document the agreement clearly — type of business, duration, profit split.

🚫 What Not to Do

What to Do ↑ As You Wish ↓

[h]Guarantee the capital or profit in a mudaraba — this invalidates the contract.

[H]The mudarib commingle funds without agreement or act beyond scope.

⭐ As You Wish

What to Do ↑ What Not to Do ↑

Any lawful business, trade, or investment is permissible.

💬 Comments & Feedback

No comments yet. Be the first to share your thoughts!