Results for tag: "Mudarabah"

Mudarabah is an Islamic financial contract in which one party, the investor (rabb-ul-mal), provides capital to another party, the entrepreneur (mudarib), to invest in a business venture. The entrepreneur is responsible for managing the venture and the investor receives a share of the profits. The investor does not have any control over the venture and does not bear any losses. The profits are shared according to a predetermined ratio, which is agreed upon by both parties. Mudarabah is a popular form of Islamic finance, as it allows investors to benefit from the profits of a venture without taking on any of the risks. It is also a form of risk-sharing, as the investor and entrepreneur share the profits and losses of the venture. Mudarabah is used in a variety of markets, including banking, investment, and insurance. Companies that offer Mudarabah-based products and services include Islamic banks, investment funds, and insurance companies. Examples of Islamic banks include Al Rajhi Bank, Bank Islam, and Dubai Islamic Bank. Examples of investment funds include Amanah Investment Bank and Al-Rajhi Investment Bank. Examples of insurance companies include Takaful Malaysia and Salama Islamic Arab Insurance Company. Show Less Read more