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Partnership and Mudarabah — Sad 24 and the Foundations of Islamic Commerce

fiqh Level: intermediate muamalat fqh-112
وَإِنَّ كَثِيرٗا مِّنَ ٱلۡخُلَطَآءِ لَيَبۡغِي بَعۡضُهُمۡ عَلَىٰ بَعۡضٍ إِلَّا ٱلَّذِينَ ءَامَنُواْ وَعَمِلُواْ ٱلصَّٰلِحَٰتِ
— ص 24
Verse: "Indeed many partners oppress one another, except for those who believe and do righteous deeds." (38:24)

"Al-Khulata" (partners): Those whose assets are intermingled — this verse is cited as evidence for the permissibility of partnership.

Types of partnership in Islamic jurisprudence:
  1. Inan partnership: Two parties with equal or unequal capital for trade — most common.
  2. Mudarabah (qirad): One party provides capital; the other provides labor and expertise — profit divided by agreed ratio.
  3. Body partnership: Partnership in labor not capital — like craftsmen.
  4. Wujuh partnership: Based on reputation and standing in markets — without capital.
Origin of mudarabah: The Prophet worked in mudarabah with Khadijah before revelation — and the Quraysh trade caravans were collective mudarabah arrangements. Evidence: Quran, Sunnah, and Companion consensus.

Legal framework: Profit for both parties by agreed ratio — loss borne only by the capital owner — the worker bears no loss except through transgression.
Source: Al-Qurtubi (15/191); Al-Mughni (5/3); Al-Jassas (5/150); Ibn Rushd, Bidayat al-Mujtahid (2/172)
Question: What is the difference between inan partnership and mudarabah? How is loss distributed in mudarabah?
Answer: Inan: two parties with shared capital. Mudarabah: one provides capital; the other labor. Loss distribution: borne by the capital owner only — the worker is not liable except through transgression.
Printed from quran.zayenha.com — 6/3/2026