About this document
Understanding Mudarabah in Islamic Finance by Muhammad Ahmed Butt is a document available to read on EtoBox.
1. Mudarabah is a special type of partnership in Islamic banking where one partner provides capital to another to invest in a business venture. The capital provider is called the rabb-ul-mal and the manager is called the mudarib. 2. Profits are shared according to a predetermined ratio agreed upon by both parties, with the mudarib earning a wage and the rabb-ul-mal earning the remaining profits. Losses, if any, are borne solely by the rabb-ul-mal. 3. The contract can be terminated by either party with not
- Author
- Muhammad Ahmed Butt
- Language
- EN