Thus, the ḥadith establishes the lawfulness of partnership and actively encourages it, provided there is no betrayal between the partners; for partnership rests on mutual cooperation, and “Allah is ever helping the servant so long as the servant is helping his brother.”
Accordingly, one should select a partner whose wealth is wholly lawful and avoid anyone whose assets are unlawful or whose funds are a mixture of lawful and unlawful sources.
A Muslim may partner with a non-Muslim on the condition that the non-Muslim is not left to manage the enterprise alone; rather, the Muslim must oversee the transactions, lest the non-Muslim engage in ribā (usury) or other prohibited dealings when acting without supervision.
Partnerships fall into two broad categories:
- Partnership of ownership (sharikat al-amlāk).
- Partnership by contract (sharikat al-ʿuqūd).
A partnership of ownership is a shared entitlement—for example, co-owning real estate, a factory, vehicles, and the like.
A partnership by contract is a shared right of disposal—such as collaborating in buying, selling, leasing, and so forth. This contractual partnership may combine capital and labour, or consist of labour only, and it is divided into five types:
• First: a partnership that combines both capital and labour; this is called sharikat al-ʿinān (capital-and-labour partnership).
• Second: a partnership in which one party supplies the capital and the other provides the labour; this is known as muḍāraba (silent-partner financing).
• Third: a partnership based solely on assumed liability and credit, with no capital invested; this is termed sharikat al-wujūh (credit partnership).