A member-governed Islamic investment club built on profit-sharing, not interest-bearing loans
Qirād Club connects capital providers with Muslim SMEs through a structured partnership model rooted in Qur’ānic ethics, Mālikī jurisprudence, and modern governance.
It exists for two reasons:
Qirād Club is designed to serve both sides of the partnership: investors seeking lawful profit and entrepreneurs seeking halal growth capital.
Every opportunity must pass both Sharī'ah compliance review and commercial review before any capital is deployed.
An entrepreneur submits business information, projections, and disclosures for review.
The opportunity is screened for Sharī'ah compliance and basic commercial suitability.
The Investment Committee conducts due diligence and assesses commercial viability.
Eligible opportunities are presented to members for consideration and vote.
If approved, the Qirād agreement is signed and funds are deployed in line with agreed terms.
Profits are shared by agreed ratio; losses follow the Qirād model and contract terms.
The qirād (muḍārabah) is one of Islam's oldest commercial institutions. Traditionally it often linked one capital provider with one trader. Our club revives the same ethical core in a structured modern form: a member-governed investment club that channels halal equity to Muslim SMEs.
In classical qirād, a rabb al-māl (capital provider) entrusts funds to a muḍārib (entrepreneur) who applies skill and effort. Profits are divided by pre-agreed ratio; losses fall to capital unless the muḍārib was negligent or in breach of trust.
The Mālikī school's relative flexibility — particularly on profit-ratio structuring, the permissibility of investing in mixed-asset enterprises with conditions, and its openness to custom ('urf) as a source of law — makes it especially well-suited to contemporary investment contexts.
Our club adds modern safeguards: structured due diligence, defined governance, ring-fenced capital handling, liability clauses grounded in South African law, and independent Sharī'ah compliance oversight before capital is deployed.
This is not financial speculation. It is principled risk-sharing designed to pursue halal profit while also helping build real businesses inside the Muslim community.
Capital, enterprise, oversight, and accountability work together in one ethical structure.
Members who contribute capital. They share in profit and bear financial risk in the event of a lawful loss. They do not manage the business day to day.
The operating partner who contributes skill, labour, and time. The muḍārib earns a share of profits and is accountable for negligence, breach of trust, or acting outside the agreed mandate.
Independent scholars review each investment for Sharī'ah compliance before capital is deployed and monitor ongoing activities where necessary.
A committee responsible for due diligence, reviewing business opportunities, assessing risk, and preparing opportunities for member consideration.
Regular reporting, documentary transparency, and independent review help protect the trust placed in every investment round.
Each investment round has a defined term, agreed exit provisions, and documented settlement terms so that parties know the process from the outset.
The classical qirād is augmented with contemporary protections that do not compromise its ethical core — satisfying both Sharī'ah requirements and enforceability under South Africa's hybrid Roman-Dutch and constitutional legal order.
Capital is indexed to a commodity basket (gold + food staples) rather than nominal currency, protecting against inflationary erosion. This is consistent with Mālikī positions on the permissibility of specifying capital in stable units of value rather than depreciating fiat.
Mālikī PrecedentThe muḍārib accepts explicit liability for capital losses attributable to ta'addī (transgression) or taqṣīr (negligence). This maps directly onto the Roman-Dutch law of culpa and dolus as received in South African delict. Defined negligence triggers are enumerated in the contract schedule, enabling enforcement before the South African courts without distorting the qirād's risk-sharing structure.
Fiqh + Roman-Dutch DelictA standardised 12-point due diligence checklist is completed before any investment decision, covering sector compliance, financial health, management integrity, market analysis, and reputational screening. A negative finding on any mandatory criterion is an automatic bar to investment.
Club Charter § 4All disputes are resolved first through a structured sulḥ (reconciliation) process mediated by the Sharī'ah Board. Failing that, binding arbitration under the South African Arbitration Act 42 of 1965 (as amended) applies, with the seat in South Africa. South African courts recognise and enforce such awards, and the good-faith obligations of Roman-Dutch contract law reinforce the sulḥ process as a legitimate pre-litigation step.
Arbitration Act 42 of 1965 + SulḥInvestments in the following sectors are permanently excluded: alcohol, tobacco, conventional finance (ribā-based), weapons manufacture, gambling, adult entertainment, pork production. Additionally, enterprises with >30% revenue from ḥarām-adjacent activities are excluded unless effective separation can be demonstrated.
Sharī'ah Board MandateThe muḍārib must provide: monthly management accounts, quarterly narrative reports, access on request to underlying records, and immediate notification (within 48 hrs) of any material adverse event. Failure triggers a contractual right for investors to appoint a management observer.
Club Charter § 7South Africa's foundational private law is Roman-Dutch, not English common law. This is profoundly compatible with qirād: the Roman societas (partnership based on shared risk), bona fides (good faith in contract), laesio enormis (protection against grossly unfair bargains), and condictio sine causa (unjust enrichment recovery) all resonate directly with the ethical architecture of muḍārabah. The Constitution's s 39(2) further requires courts to develop private law in ways that promote its values — reinforcing equitable risk-sharing.
Roman-Dutch Law + Constitution s 39(2)The club is structured as a voluntary association with per-investment partnership agreements — a form recognised under South African law that does not trigger collective investment scheme regulation under the Collective Investment Schemes Control Act 45 of 2002, provided members are active partners rather than passive depositors. The Financial Sector Conduct Authority (FSCA) framework is monitored for any developments in Islamic finance regulation, including the Conduct of Financial Institutions (COFI) Bill.
CISCA 45 of 2002 · COFI BillUnlike interest-based lending where return is fixed regardless of outcome, qirād distributes real profits by agreed ratio. Our default structure — modifiable per-round by member vote — reflects Mālikī flexibility on ratio negotiation.
Every investment undergoes a multi-stage review combining commercial analysis with Sharī'ah oversight.
Muḍārib submits business plan, financial projections, sector description, and personal disclosure through the secure member portal.
The Board's secretariat checks sector eligibility and initial compliance against the Exclusion List. Non-compliant applications are declined at this stage.
Investment Committee applies the 12-point vetting protocol over 21 days. Site visits, reference checks, and market analysis are conducted.
Complete file submitted to the Board. They conduct a final Sharī'ah compliance review and either approve, conditionally approve, or reject the investment within 14 days.
Members vote on investment (simple majority required). Capital is called from participating members and held in a ring-fenced account until deployment.
Qirād agreement is signed by all parties, witnessed, and filed. Capital is released to the muḍārib in agreed tranches.
Classical qirād trusted the muḍārib's reputation in tight community networks. We replicate that accountability through systematic vetting appropriate to contemporary anonymous markets.
Full sector mapping against the Exclusion List and revenue-source breakdown for mixed enterprises.
Three years of audited accounts, cash flow analysis, and debt structure review. No ribā-based liabilities on the balance sheet.
Director background checks, reference interviews, credit history, and prior business track record.
Independent assessment of market size, competitive dynamics, barriers to entry, and demand drivers.
Financial projections reviewed under three scenarios (base, adverse, severe) with sensitivity analysis on key assumptions.
Corporate structure, existing contracts, IP ownership, and regulatory licences verified. No undisclosed encumbrances.
Assessment against maṣlaḥa (public interest) criteria. Investments must not generate negative externalities disproportionate to economic benefit.
Detailed deployment schedule showing how funds will be used, with milestone-linked tranche release conditions.
Pre-agreed exit valuation basis (EBITDA multiple, asset value, revenue multiple) to prevent gharar in terminal settlement.
Permissible takaful coverage verified for underlying assets. Conventional insurance may only be used where no takaful equivalent exists.
Management accounting system reviewed for capacity to meet quarterly reporting requirements. Deficiencies must be remediated before deployment.
Investment Committee members conduct at least one unannounced site visit. Findings are documented in the investment file.
Our Sharī'ah Board comprises independent scholars with expertise in Mālikī fiqh, contemporary commercial law, and Islamic finance. Their authority is enshrined in the club charter.
Learn how membership works, what risks apply, and how capital is reviewed and deployed.
Investor ApplicationSubmit your business for review and see whether your model fits the Qirād structure.
Business EnquiryReceive pilot-phase updates, governance information, and guidance on how the model works.
Read the FAQQirād Club is both an information platform and an intake platform. Membership is open to individuals and institutions committed to ethical, Sharī'ah-compliant investment.
Once your application is reviewed, you may be invited to an orientation session covering the contract model, governance, risks, and current pipeline. Pilot-phase timing may vary depending on review volume.
All tiers carry one vote in member decisions. Higher tiers receive proportionally greater profit distributions but no additional governance rights. This reflects the principle of shūrā (consultation) in which all voices are equal.