Mudarabah Questions With Answers
What is Mudarabah in Islamic finance?
Mudarabah is a financial contract in Islamic finance where one party, known as the “Rab-ul-Maal,” provides capital, while the other party, known as the “Mudarib,” contributes expertise and management.
Profits generated from the business venture are shared between the two parties based on a pre-agreed ratio, while losses are typically borne by the Rab-ul-Maal.