A Word on Mudarabah Partnerships and the Business Relationship Between Muhammad (peace and blessings be upon him) and Khadeejah (Allah be pleased with her)

A Word on Mudārabah Trade and Partnerships

The Makkans would sell their merchandise and buy the merchandise from others – and all would prosper. In winter, Shām was cold, so trade shifted to Yemen where the weather was better, and during the summer, trade would flourish with Shām. So, Makkah was well-placed on the trade route and became a prosperous trading city. Allah said:

لِإِيلَـٰفِ قُرَيْشٍ ١
إِۦلَـٰفِهِمْ رِحْلَةَ ٱلشِّتَآءِ وَٱلصَّيْفِ ٢
فَلْيَعْبُدُوا۟ رَبَّ هَـٰذَا ٱلْبَيْتِ ٣
ٱلَّذِىٓ أَطْعَمَهُم مِّن جُوعٍۢ وَءَامَنَهُم مِّنْ خَوْفٍۭ ٤

“[It is a great Grace from Allah] for the protection of the Quraish. [With that, We cause] the Quraishite caravans to set forth safely in winter [to the south] and in summer [to the north without any fear]. So let them worship the Lord of this House [in Makkah], Who has fed them against hunger, and has made them safe from fear.” (Quraish: 106)

Khadeejah would not travel to these places to trade in person. The Makkans would use the method of Mudārabah to make money. Mudārabah is a form of business contract where one party brings the investment/capital (he is the rabbal-māl) and the other party brings personal effort/hard work (he is known as the mudārib). The share of profit that is made is set by a contract agreed between the two. The loss, however, is only taken by the investor (rabbal-māl) and the mudārib gets nothing for his labour/effort. Wealthy women of the Quraysh would engage in this type of business. It is no wonder therefore that Khadeejah (Allah be pleased with her) and Muhammad (salallāhu ʿalaihi wasallam) entered into this business arrangement. Ibn Saʿad stated in at-Tabaqāt (1/129-130) that Khadeejah (Allah be pleased with her) approached Muhammad (salallāhu ʿalaihi wasallam) to trade her goods in Shām for twice as much profit she would normally pay. Muhammad (salallāhu ʿalaihi wasallam) consulted Abu Tālib and accepted the agreement. She knew full well that she was employing the most trusted, honest and blessed person known in Makkah. This is a sign of a keenly intelligent and wise woman.