Mudarabah

A Mudarabah is a partnership between two or more parties to conduct business. The investor referred to as the Rabb al Maal supplies the capital and the other provides the management expertise. The manager of the investment, referred to as the Mudarib, is solely responsible for managing the business.
Profit is shared based on pre-arranged ratios which must be clearly defined for all the partners at the Mudarabah’s inception.

Debt cannot be used as an investment for equity.

Proceeds for investment must be Shariah-compliant

All investments must also be Shariah-compliant