Mudharabah Contract (Profit Sharing)
Mudarabah is a special kind of partnership
where one partner provides the capital (rabb-ul-maal) to
the other (mudarib) for
investment in a commercial enterprise.
Mudarabah is an Islamic contract in which one
party supplies the money and the other provides management expertise to
undertake a specific trade. The party supplying the capital is called owner of
the capital. The other party is referred to as an agent who actually runs the
business.
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