Ruling on Muslim entering into business partnership with Christians and others

Praise be to Allah.

With regard to a Muslim entering into a partnership with a Christian or any other non-Muslim in raising livestock or farming or anything else, the basic principle is that it is permissible so long as it does not involve too close a friendship, and it is only cooperation in some kind of wealth such as agriculture, livestock and so on. A number of the scholars said that that is permissible provided that the Muslim himself is in charge of the business, i.e., he himself is in charge of running the venture in agriculture or raising livestock, and the kaafir should not do that, because he is not to be trusted. 

This is subject to further discussion. If this partnership will lead to too close a friendship or doing that which Allah has forbidden or failing to do that which Allah has enjoined, then this partnership is haraam because of the corruption to which it leads. But if it will not lead to any of those things and the Muslim is the one who is in charge, and he is the one who will take care of it so that he would not be cheated, then there is nothing wrong with that. 

But whatever the case, it is better to avoid such partnerships and to enter into partnerships with his Muslim brothers rather than others, so that he will keep his religious commitment and his wealth safe, because entering into a partnership with one who is an enemy to him in religious terms poses a danger to his morals, religious commitment and wealth. So it is better for the believer in every situation to keep away from such matters, so as to protect his religious commitment, to protect his honour, to protect his wealth and so as to avoid betrayal by one who is an enemy to him in religious terms, except in cases of necessity when there is a need for that, in which case there is nothing wrong with it, subject to the conditions mentioned above, namely that it should not cause any harm to his religious commitment, honour or wealth and on condition that he should be in charge, because that is safer for him. So the kaafir should not be in charge; rather the Muslim should be in charge of the business or a Muslim should act on his behalf.

End quote. 

Shaykh ‘Abd al-‘Azeez ibn Baaz (may Allah have mercy on him)