Provisions of Al-Qirad (Silent Partnership) in "Al-La'ali al-Manthumah" by Sheikh Faraj Ali al-Faqih: A Foundational Jurisprudential Study

Abstract

This research sheds light on the distinct jurisprudential approach of Sheikh Faraj Ali Al-Faqih through his scholarly poetic text titled “Al-La’ali Al-Manthumah” (The Arranged Pearls), underscoring his status as an encyclopedic scholarly figure who combined the Sharia sciences, the Arabic language, and administrative expertise. The study centers on the rulings of the Qirad (or Mudharabah) contract, considering them synonymous terms for a single jurisprudential concept whose nomenclature differed between the people of Hejaz and the people of Iraq. This contract regulates investment-based financial transactions built upon the duality of (capital and labor). The research concludes by establishing the legitimacy of this contract using textual and rational evidence, while reviewing its five pillars: the two contracting parties (the capital provider and the entrepreneur), the capital, the labor, and the profit. It also examines the jurisprudential guidelines governing its rulings, highlighting some of the differences among Maliki jurists regarding them. Among these rulings is the permissibility of the worker’s maintenance and clothing from the Qirad capital during business travel under specific conditions, and establishing the fundamental rule that the worker's hand is a "hand of trust" (Yad Amanah), meaning they are not liable for losses unless due to transgression or negligence. Additionally, the study details the Zakat rulings associated with the growth derived from the principal capital. The research concludes by presenting a foundational, purpose-driven (Maqasidi) vision that urges the observance of piety and the avoidance of dealing with mixed funds (the lawful with the unlawful) in order to achieve the ultimate Sharia objective of securing wholesome earnings and ensuring the purity of transactions.