mechanism of mudharabah

Islamic Ruling on Mudharib (in Mudharabah) Taking Profits Before the Final Calculation

Mudharabah is a form of partnership in Islamic economic systems involving two main parties: the capital provider (shahibul maal) and the entrepreneur or manager (mudharib). The capital provider supplies the funds, while the mudharib manages the business using those funds. Profits are shared according to a pre-agreed ratio, while losses are borne by the shahibul maal, except when losses occur…

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