Search results
Mudarabah: The term refers to a form of business contract in which one party brings capital and the other personal effort. The proportionate share in profit is determined by mutual agreement. But the loss, if any, is borne only by the owner of the capital, in which case the entrepreneur gets nothing for his labour.
Mudarabah Meaning and Definition: Mudaraba is derived from the Arabic word ‘daraaba’ which means partnership or profit sharing. Mudarabah is defined as an agreement between two parties where one party provides capital while the other manages the investment activities.
26 Mac 2024 · Mudarabah (profit-loss sharing business) is a type of business agreement between two parties where one party provides capital (Rabb-ul-Maal) and the other labor or management (Mudarib) for the business. It helps finance businesses based on profit sharing without involving any riba or interest.
Learn about the concept and application of mudarabah, a profit-sharing contract in Islamic finance, from Bank Negara Malaysia's official document.
Definition of mudarabah. Literally, the word mudarabah is derived from the Arabic “ daraba ” which means travelling for business. Technically, mudarabah is a type of partnership where one party provides capital and the other party provides labour and management skills. So, there are two parties: capital provider and manager.
Mudarabah is a contractual relationship executed between two parties, one supplying the capital (rabbulmal) and the other supplying the labor and skill as agent or manager (mudarib), for investing in a pre-determined activity, which grants each party a share of the earnings as determined at the time of the investment.
5 Apr 2017 · Mudharabah is essentially an Islamic term for a profit-sharing arrangement. In a Mudharabah contract, the investor (called Rabbul Mal ) provides the capital while the entrepreneur ( Mudarib ) provides the expertise and specialization.
Mudarabah, the most-widely known Islamic contract, is a profit sharing contract in which one party (the Rab al Maal) provides funds and the other (the managing trustee, the Mudarib or Ameel) management expertise.
7 Jan 2022 · Mudharabah (مضاربة) is a type of partnership (sharakah or musharakah) for profit which is structured so that one partner (known as rabb al-mal) provides capital (funds or mal) and the other (known as al-mudharib) provides labor and expertise (‘amal and khibrah).
Mudarabah is a special kind of partnership where one partner providers the capital (rabb-ul-maal) to the other (mudarib) for investment in a commercial enterprise. According to Mufti Taqi Usmani Damat Barakhatuhum, a mudarabah arrangement differs from the musharakah in five major ways:
