Business partnership and partner’s money is suspicious – not prohibited

7-3-2012 | IslamWeb

Question:

The business in our factory has been going through some difficult times. The landowner is a shareholder and he is a Christian. His money is more likely to have been made through trading in alcoholic drinks. Could this be the reason behind our difficult times?
Is it lawful to have a business partnership with this man?

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Answer:

All perfect praise be to Allaah, the Lord of the worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.

 

What you have mentioned may be a cause of such difficult times. Also, the sins of some of the workers may be the cause. However,  a Muslim should judge  himself first, before judging others, especially when things begin to go wrong. 

On the other hand, suspecting the resources of the Christian shareholder and surmising that they are from alcoholic drinks does not make it unlawful to  enter a business agreement with him if the business activity is lawful. The Prophet, sallallaahu ‘alayhi wa sallam, used to trade with the Jews even though they earned their money by illicit means.  Also, when the Prophet died, his armor  had been pawned to a Jew. [Al-Bukhari]

The Prophet, sallallaahu ‘alayhi wa sallam, also answered an invitation to a meal from  a Jew. [Al-Bukhari]

This only applies to the case if the shareholder you mentioned is not independently managing business transactions. It would be better if you could replace that partner,   buy out his share, or dissolve your partnership with him.

Allaah Knows best.