mudharabah contract
- Blog
Be Careful! These 3 Defects Make The Mudarabah Contract Become Riba
Who isn’t tempted by the promise of immense wealth in this world and paradise in the afterlife? This is surely the dream of all of us. So, it’s no surprise that enthusiasm for financial migration and ridding our wealth of usury is currently at an all-time high. We want to increase our assets, but through paths that please Allah ﷻ.…
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Mudharabah in Islamic Bank
Mudharabah is a key concept in the Islamic business and economic system. This contract serves as a foundation for financing and fundraising instruments in the Islamic financial industry. Based on profit-sharing based on business performance, the Mudharabah contract is considered fairer and more equitable than conventional interest-based lending systems, which burden business managers in the event of adverse events. This…
Read More » - Business
How to View Loss Sharing in a Mudharabah Contract from the Income Statement
Mudharabah is a form of business cooperation in Islamic finance where one party provides capital (shahibul maal) and the other provides expertise and labor (mudharib). It is important for both parties to understand how losses are shared in this contract, especially through the analysis of the income statement. A good understanding of loss distribution helps maintain trust and harmonious cooperation…
Read More » - Islamic Economics
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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How Mudharabah Akad Works in Sukuk Issuance
The Islamic capital market is one of the innovations in the field of Islamic finance that presents Islamic contracts and values in capital practices and transactions in the capital market. One of the innovations in securities issuance in the Islamic capital market is sukuk. Sukuk itself is defined based on the fatwa of the National Sharia Council of the Indonesian…
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