Fatwa#: 39273
Asked Country: United States

Answered Date: Oct 27,2017

Title: Is it permissible to be a sleeping partner in a business?


Assalamoalaikom mufti saheb..My question is -Can Muslim be a sleeping partner of any business where he will only give money but will not have any say how the business will run..the main owner of business will use the money from Muslim investor mainly in business expansion but at the same time he  may be will keep 6/7 % of invested money  in interest bearing bank account .The businesse is a pultry business which is halal..Allah hafez


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. 

The concept of sleeping partner is recognized in Shar’iah. One is a sleeping partner is a Musharakah partnership with the partners who make a capital contribution. [1] Another sleeping partner is in a Mudarabah partnership where only one person is the financier. The other partner does the business or the financier has a say in the running of the business.[2]

You refer to business expansion. However, you did not refer to which type of sleeping partnership you are referring to and which partnership you wish to use.

The rules and regulations of both types of partnerships are different with different implications.

Furthermore, it is not permissible to earn interest on your bank deposits. Therefore, when a person has an option to deposit his money in an interest-free account, then it is not permissible for him to deposit it in an interest-bearing account.[3]

And Allah Ta’āla Knows Best

Abdullah Syed Sajid

Student Darul Iftaa          
Houston, TX, USA

Checked and Approved by,
Mufti Ebrahim Desai.

[1] An introduction to Islamic finance (Mufti Taqi Usmani sahib): Page # 37


[2] An introduction to Islamic finance (Mufti Taqi Usmani sahib): Page # 47


مختصر القدوري (ص: 113)

المضاربة: عقد على الشركة بمال من أحد الشريكين وعمل من الآخر


تبيين الحقائق شرح كنز الدقائق وحاشية الشلبي (5/ 52)

الْمُضَارَبَةُ عَقْدُ شَرِكَةٍ بِمَالٍ مِنْ أَحَدِ الشَّرِيكَيْنِ وَعَمَلٌ مِنْ الْآخَرِ


الَّذِينَ يَأْكُلُونَ الرِّبَا لاَ يَقُومُونَ إِلاَّ كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَلِكَ بِأَنَّهُمْ قَالُواْ إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا (البقرة: ٢٧٥)  [3]


يَا أَيُّهَا الَّذِينَ آمَنُواْ اتَّقُواْ اللّهَ وَذَرُواْ مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ, فَإِن لَّمْ تَفْعَلُواْ فَأْذَنُواْ بِحَرْبٍ مِّنَ اللّهِ وَرَسُولِهِ وَإِن تُبْتُمْ فَلَكُمْ رُؤُوسُ أَمْوَالِكُمْ لاَ تَظْلِمُونَ وَلاَ تُظْلَمُونَ (البقرة: ٢٧٨، ٢٧٩)


وَأَخْذِهِمُ الرِّبَا وَقَدْ نُهُواْ عَنْهُ وَأَكْلِهِمْ أَمْوَالَ النَّاسِ بِالْبَاطِلِ وَأَعْتَدْنَا لِلْكَافِرِينَ مِنْهُمْ عَذَابًا أَلِيمًا (النساء: ١٦١)


وَمَا آتَيْتُم مِّن رِّبًا لِّيَرْبُوَ فِي أَمْوَالِ النَّاسِ فَلَا يَرْبُو عِندَ اللَّهِ وَمَا آتَيْتُم مِّن زَكَاةٍ تُرِيدُونَ وَجْهَ اللَّهِ فَأُوْلَئِكَ هُمُ الْمُضْعِفُونَ (الروم: ٣٩)  

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