Mudhaarabah

· 9 Shaʻban 1438 AH1 min readEnglish
Business and DealingsMudhaarabatbusinessmudhaarabah

Question

What is “mudhaarabah”?

Answer

The gist of mudhaarabah is that finance is forwarded by one person and the other is the active partner. Thereafter, the profits are distributed between the two partners according to the arranged percentage.

And Allah Ta'ala (الله تعالى) knows best.

References (Arabic / Urdu sources)

كتاب المضاربة (هي) لغة مفاعلة من الضرب في الأرض وهو السير فيها وشرعا (عقد شركة في الربح بمال من جانب) رب المال (وعمل من جانب) المضارب (الدر المختار 5/645)

Answered by
Mufti Zakaria Makada
Checked & approved by
Mufti Ebrahim Salejee (Isipingo Beach)
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