Mudhaarabat

Q: I intend to enter into a Mudhaarabah agreement as a Mudhaarib, kindly advise me if the below transaction between the Mudhaarib and Rabbul maal is permissible: 

1. The Mudhaarib will rent out space of the Rabbul Maal's warehouse at a set price/sqm. 

2. The Rabbul Maal will facilitate the picking and packing of products in the warehouse for a cost per carton. the above arrangements will be structured as three separate contracts: 

 The Mudhaarabah agreement. 
 A separate Ijaarah (rental) agreement for the warehouse space. 
 A separate Ijaarah (service) agreement, whereby the Rabb-ul-Maal undertakes the picking and packing for an agreed fee. 

The following conditions will be observed: 
 The Mudhaarabah capital (Ra-sul-Maal) will first come under the full control and possession of the Mudhaarib. 
 The Mudhaarib will retain full discretion over the management of the Mudhaarabah business and will remain at liberty to rent any other warehouse and engage any other service provider. His choice to utilize the Rabb-al-Maal's warehouse and services will arise only through separate Ijaarah agreements and will not result in the Rabb-al-Maal effectively retaking control of the Mudhaarabah assets or operations. 
 The rental and service fees will be fixed and known, and will represent genuine consideration for those services rather than a means of guaranteeing a return to the Rabb-ul-Maal.

Q: In a business investment, if a person invests his money (let say 100%) and another person invests his efforts and they share the profits as per mutual agreement, then I wonder how this business deal ends in the case where the investor wants to withdraw from the business.

Does he take back everything as he invested 100%, and in general should the person who wants to take up the business have to pay the prinicipal amount invested by the investing person for him to stay away from the business (with a mutual deal)?

Q: Please comment on the following from Maliki Fiqh disallowing sleeping partners in an Islamic Contract.

Please give the Hanafi position with proofs.

The only formula for a silent investor is a business loan or Qirad. In a partnership all the partners have to work, they are all equally owners and therefore equally responsible.

I said: “What is your opinion of an arrangement in which I place a person in a stall and say to him: ‘I will accept the goods and you will do the work on the condition that whatever God grants us will be shared between us equally?’” He said: ”According to Malik, this is not permissible.” (Sahnun, Mudawwana, 12: 41).

I said: “What is your opinion of a partnership between three people in which one provides the millstone, the other the house, and the other the work-animal, on the condition that the owner of the animal does all the work?” He said: “The entire proceeds of the work are to go to the owner of the animal who executes the work, and he is obligated to pay the rental fee for the millstones and house.” I said: “Is this also the case even if he does not earn anything?” He said “Yes, even if he does not earn anything.”(Sahnun, Mudawwana, 12: 45).

Ibn Qasim rejects the validity of a partnership based in cash only which stipulates that all the work be done by only one of the partners. He explains his rejection as follows:

“The basis for this is that according to Malik, a partnership is not permissible unless they combine in its work proportionally to their respective shares in the joint capital.”(Sahnun, Mudawwana, 12: 60).

Q: I wish to do mudaarabah with a friend. I am the active partner. If I make a profit it'll be shared according to the percentage of profit agreed between us. However if I happen to make a loss, I take the responsibilty of returning the sleeping partner's money (capital). I take this guarantee. Is this halaal. If not please guide us to a legitimate way.

Q: Is it permissible to make it a condition in a mudhaarabah that the mudhaarib (working partner) will also be liable for losses?

Q: Is it permissible, in a mudhaarabah partnership, for both the rabbul maal (financer) and the working partner to draw a specified equal salary per month? Can the salaries be different to the profit share ratio?

Q: What is “mudhaarabah”?

Q: I want to ask about the ribba free profit loss based Islamic investment. Currently I am interested in Meezan Bank Monthly Mudarbah Certificate, which states that its ribba free and bank becomes your partner on rabb ul mall and mudarib basis. Half profit goes to bank and half to the customer while the percentage of profit is changed each month according to profit loss base.

While if there if there is a loss, customer will also bear the loss. For your more information here below is the link for further review. https://www.meezanbank.com/monthly-mudarabah-certificate/ Please guide me if it is OK with islamic teachings and halaal?

Q: What is "Mudhaarabah"? Is it halaal for Muslims to do? If yes, in what cases it will be permissible?

Q: People invest money in a business that they call mudhaarabah. They give money to a company with the agreement that they will receive R8000 if they deposit R100 000, and they can take out their R100 000 at any time. What is mudhaarabah, and is this agreement permissible or not?