With the Hadith
Al-Mudarabah (Profit Sharing)
We greet you all, dear listeners, everywhere, in a new episode of your program "With the Hadith," and we begin with the best greeting, so peace, mercy, and blessings of God be upon you.
Abu Dawood narrated in his Sunan:
Muhammad ibn Sulaiman al-Missisi told us, Muhammad ibn al-Zibriqan told us, from Abi Hayyan al-Taymi, from his father, from Abu Hurairah, who raised it (the Hadith), said:
"Indeed, God says: I am the third of two partners as long as one of them does not betray his companion, but if he betrays him, I depart from between them."
The author of Awn al-Maboud said:
(I am the third of two partners): Meaning with them in preservation and blessing, I protect their money and give them sustenance and good in their dealings.
(I depart from between them): And in some versions "from between them" in the dual form, which is apparent, meaning the blessing is removed by taking away the preservation from them.
Razin added "and the devil came," meaning he entered between them and became their third.
Al-Tibi, may God have mercy on him, said: Partnership is an expression of the mixing of some people's money with each other in a way that it is not distinguished, and God's partnership with them is metaphorical, as if He Almighty has made the blessing, grace, and profit in the place of mixed money, so He called Himself Almighty their third, and made the devil's betrayal and erasing the blessing in the place of the mixed, and made him their third, and His saying I departed from between them is a candidate for the metaphor.
And in it is the desirability of partnership, for the blessing is poured from God Almighty in it, unlike when it is individual, because each of the two partners strives for the prosperity of his companion, and that God Almighty is in the help of the servant as long as the servant is in the help of his Muslim brother.
Dear listeners,
In this noble Hadith is an indication of the permissibility of partnership in Islam, but rather an encouragement for it... as God Almighty informs that He is with the two partners, blessing their livelihood and preserving it as long as they adhere to the rulings of Sharia in their dealings.
Partnership in Islam is a contract between two or more people who agree to carry out financial work for the purpose of profit.
The partnership contract, like all contracts, requires offer and acceptance together.
The offer is that one of them says to the other, "I have partnered with you in so-and-so," and the acceptance is that the other says, "I have accepted."
The point is not in the words themselves, but in the meaning, that is: it must be verified in the offer and acceptance what indicates that one of them addressed the other with a partnership on something, whether the address was oral or written. And that the other accepted that.
It is stipulated in the validity of the contract that the subject of the contract be an action capable of agency, so that what is benefited from this action is shared between them. That is, the contract must be on the body of one or both partners... and this is from extrapolating and following up on the types of contract partnerships that people used to deal with during the time of the Messenger of God, may God bless him and grant him peace, and which he approved of them, and from following up on the Sharia rulings related to them.
The body is a basic element in all types of companies in Islam.
If two people share in a trade, the money is from one of them and the work is from the other, on the condition that the profit is between them by a certain percentage, for example, equally, or one third for one and two thirds for the other, or any specific percentage they agree upon, this partnership is called: Al-Mudarabah (Profit Sharing).
Al-Mudarabah is one of the legitimate works for earning and owning money. The Mudarib (worker) has participated with his effort in trading with his partner's money - in exchange for obtaining a certain percentage of the profit. So his work was a reason for earning money. And a way to develop his partner's money. What a lofty and refined transaction, in which those with money provide their money to their brothers who need work and have expertise, but they do not have the money necessary to manage a commercial business, so the worker trades with his partner's money and reaps the profit, and they divide it together according to what they agreed upon in the partnership agreement.
For in this way, the poor man of experience refrains from borrowing from usurious banks to establish a commercial project, or from sitting unemployed, begging from people and taking alms from their hands, swallowing with it humiliation and brokenness.
Truly, our religion is a great religion from the All-Knowing, All-Wise... It has legislated for us treatments for the problems we face in all areas of life... But many people do not realize the buried treasures and the hidden pearls in the book of their Lord and the Sunnah of their Prophet... which solve their problems, preserve their dignity, and remove envy, hatred, and animosity from their hearts, and make them happy in their world and their hereafter... So they resort to Western laws, seeking salvation from them... and they do not know that Western solutions are destruction itself.
O God, enlighten the insights of the Ummah of Muhammad and open their hearts to see and realize where their true interests lie, so that they may return to You repentant and returning... to restore Your rule and the state of Your Prophet... so that You may be pleased with them and grant them success in this world and the hereafter.
Amen
Dear listeners, until we meet you with another Prophetic hadith, we leave you in God's care, and peace, mercy, and blessings of God be upon you.
