Ruling 2235 — Sleeping Partnership (Muḍārabah)

An owner can invest in things that are sanctioned in Islamic law (mashrūʿ) by way of a ‘reward’ (juʿālah)[1] to achieve the same result he would achieve in a sleeping partnership; i.e. he can entrust someone with some property and say, for example, ‘Use it for trading or any other operation, and the equivalent of half the profits will be for you’.