Islam encourages all efforts to promote the economy of the Muslim community and make Muslims financially strong. At the same time, Islam aims to establish good relations among Muslims. It commands Muslims to avoid all things that lead to conflict and hatred among them. Allah Almighty says: “O ye who believe! Squander not your wealth among yourselves in vanity, except it be a trade by mutual consent, and kill not one another. Lo! Allah is ever Merciful unto you” (An-Nisa’: 29).

Dr. Monzer Kahf, a prominent economist and financial expert, states: “To be a silent partner in a company is normally permissible. In Shari`ah, this is called mudarabah in which you contribute only capital, part or all, and leave the management to other partners. But it seems there is a conflict of interest because the mudarabah deals with the same products of your employer. Conflict of interest issues are usually solved by disclosure. If you tell your employer about your part in this company and he raises no objection, it becomes permissible; otherwise, he would have the right to terminate your employment. In other words, it is permissible with disclosure, and you carry the consequences.”