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Mudarib


Arabic (مضارب) for the labor provider/ worker in a contract of mudaraba. Labor or work includes entrepreneurship, management, and investment skills, and all business expertise needed for a capital-labor partnership to achieve its objective (i.e., profit). This is the contribution provided by mudarib against the capital (ras al-mal) provided by rab al-mal (owner of funds). As a general rule, mudarib has the exclusive right to run the business of mudaraba in his own way, and without interference from the provider of funds (Hanbalis, however, consider the participation of the provider of funds in the work permissible).

Mudarib should take all measures to ensure that his actions are shari’a-compatible and conforming to the applicable practice of the business activity. Moreover, mudarib should observe the conditions set by the provider of funds, provided that such conditions do not hinder the general conditions of the mudaraba contract.



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