Transactions & Dealings >> Other Transactions

Question # : 5487


Salam, my uncle runs a business and he wants some investments to be made by relatives alone, i want to get my friends money and invest it.The investment will yield some profit for my friend, the question is, can i get a percentage of the profit as commission? For example My friend invests rs.1 lakh and the profit for a month is say rs.4000/- i will give him rs.2500/- rest i will take. is this kind of commission allowed

Answer : 5487

Published on: Jun 9, 2008

بسم الله الرحمن الرحيم



You should have a deal with your friend in a way that his money will be invested in business and whatever the profit would be, it will be divided between you and him percent wise. And then give that amount to your uncle for investment and fix the percentage of profit between you and him. Then receive your share of profit from the uncle and give the share of your friend to him as was decided and keep the remaining with you. In this way, the transaction is lawful and this is called ?muzarabah?. But it should be noted that you must clarify your profit explicitly to your friend and uncle and inform your friend that you will not do the business yourself but you will hand over the amount to your uncle for business. Also, tell your friend about the percentage of profit which you will receive from your uncle and give to him (friend).

Allah knows Best!

Darul Ifta,
Darul Uloom Deoband

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