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Business with Saudi sponsor

Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Assalamu alaikum,

This question is about BUSINESS. In many Gulf countries especially in Saudi Arabia many people from the subcontinent are running business with Local Saudi as partner.

As per the Local rules a non Saudi cannot own a business in his name. For this reason many expatriates keep a Saudi as a partner. And the business will be in Saudi's name. Just to follow the rule. Where the Saudi will not have any investment in the business, but he get a fixed amount as agreed every month just to use his name.

Does Islam allows this type of business. In my opinion both of them are doing wrong.

Where the expatriate is cheating the government by having the Saudi as partner. (When actually he is the one running the business)

And the Saudi is exploiting the situation and getting a lump amount without actually doing any work. And he is also cheating the government.

Please I need your comment based on Quran and Hadhees teachings as soon as possible.

May allah bless you for spreading the knowledge of Islam.

Your brother in Islam.

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)


Business with Saudi sponsor

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad(saws) is His slave-servant and the seal of His Messengers.

Beloved brother, we must learn to differentiate between Islamic Law or Shariah, and the man-made laws made by some man-made government.

Allah Subhanah has made trading and business halaal, and has not restricted the believers to a region or place to do their halaal business. The government of Saudi Arabia if they have a law that states that the expatriates cannot indulge in trading in their country, is a law made by themselves and not a law in Shariah or Islamic Law.

Thus, if an expatriate takes a Saudi partner and pays him a lump sum for conducting business under his sponsorship, it is not a matter of halaal or haraam. If one finds a legal loop-hole in such man-made laws to circumvent the unjust laws made by man, there is no sin in Islam.

That is why if there is a dispute between the expatriate owner of the business and his Saudi sponsor, the Shariah Courts in the country uphold and honor the agreement that is made between the expatriate and the Saudi according to Shariah, and not the man-made laws of the government.

Whatever written of Truth and benefit is only due to Allahs Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

Your Brother in Islam,


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