What is the meaning of Mudarib?
What is the meaning of Mudarib?
Thus the word ‘Mudaraba’ means ‘Travel’ for undertaking business. Mudaraba is a partnership in profit whereby one party provides capital and the other party provides skill and labour. The provider of capital is called “Shahib al-maal”, while the provider of skill and labour is called “Mudarib”.
What is the meaning of Al Mudharabah?
Mudharabah (مضاربة) is a type of partnership (sharaka or musharakah) for profit (ribh) which is structured so that one partner (known as rabb al-mal) provides capital (funds or mal) and the other (known as al-mudharib) provides labor and expertise (‘amal and khibra).
What is Shirkat ul Aqd?
Shirkat-ul-‘Aqd This is the second type of Shirkah which means: “A partnership effected by a mutual contract in which the partners join together with different contributions, work or obligation for the purpose of earning profit”.
What is Shirkah al amwal?
Shirkah al ‘aqd
- Shirkah-al-amwal (wealth/finance ) where all the partners invest money as capital into the partnership/ a venture. Similar to how shareholders provide capital to a corporation through an initial public offering (IPO).
What is meant by Shirkah?
Shirkah: A contract between two or more persons who launch a business or financial enterprise###Wakalah: A contract of agency in which one person appoints someone else to perform a certain. ISLAMIC FINANCE – A PAGE REVIEW.
What is the meaning of mudarib?
Mudarib. English: entrepreneur in a Mudarabah contract. Definition: The entrepreneur or investment manager in a Mudarabah who puts the investor’s funds in a project or portfolio in exchange for a share of the profits.
What is the difference between mudarib and rabul Maal?
The investment comes from the first partner who is called “Rab-ulMaal” while the management and work is an exclusive responsibility of the other, who is called “Mudarib” and the profits generated are shared in a predetermined ratio.
What is the meaning of Al-mudarabah al-muqayyadah?
This is called al-mudarabah al-muqayyadah (restricted mudarabah). But if he has left it open for the mudarib to undertake whatever business he wishes, the mudarib shall be authorized to invest the money in any business he deems fit. This type of mudarabah is called “al-mudarabah al-mutlaqah” (unrestricted mudarabah)
What are the different types of mudarabah?
There are 2 types of Mudarabah namely: Al Mudarabah Al Muqayyadah: Rab-ul-Maal may specify a particular business or a particular place for the mudarib, in which case he shall invest the money in that particular business or place. This is called Al Mudarabah Al Muqayyadah (restricted Mudarabah).
