Answer
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
Raising dogs for hunting, guarding and other lawful needs is permissible.
Answering your question, the General Iftaa’ Department in Jordan, states the following:
Raising dogs for hunting, guarding and other lawful needs is permissible since, Prophet Muhmmad (peace be upon him) said: “If somebody keeps a dog that is neither used for farm work nor for guarding the livestock, he will lose one qirat (of the reward) of his good deeds every day.” (Al-Bukhari and Muslim)
Moreover, Al-Khatib Al-Shirbini (may Allah have mercy on his soul) said:” It is permissible to keep a dog for hunting or guarding livestock and for farming in addition to raising a puppy for similar purposes.” (Mughni Al-Muhtaj 2/342)
Selling Dogs
As for selling them, Muslim jurists said: “Whoever owns dogs should give them for whomever is in need for them for free.”
In addition, Shafi`i scholars permitted the dog owner to take money in return for abandoning it for someone else, so the money will be against abandoning the dog not as a price for it.
However, Hanafii scholars permitted buying dogs excluding those prohibited to be kept.
Furthermore, Islam permitted training dogs since, Allah, the Almighty, said: “They ask you what is lawful to them (as food). Say: lawful unto you are (all) things good and pure: and what ye have taught your trained hunting animals (to catch) in the manner directed to you by Allah. Eat what they catch for you, but pronounce the name of Allah over it: and fear Allah for Allah is swift in taking account.” (Al-Mai’dah 5:4)
This is because training dogs is a basic condition to make the preys that they hunt lawful for their owners.
In addition, Al-Imam Al-Shafi`i (may Allah have mercy on his soul) said:” A trained dog is that which responds to command, does not eat from hunted prey, and if it did as you trained it, then it will become a trained one. Besides, if it killed the prey, it won’t eat from it, so its master is permitted to eat from it, but if it the dog ate from the pray then it won’t be considered a trained one.” (Al-Umm 2/249)
In conclusion, establishing a kennel to raise and train dogs is permissible since this is considered an act of kindness. Prophet Muhammad (peace be upon him) said: “A reward is given in connection with every living creature”. (Agreed upon)
Almighty Allah knows best.