A type of mudaraba in which the Islamic bank (recipient of funds) acts as an intermediary between depositors and the bank’s clients who need financing. In other words, the Islamic bank serves as rab al-mal (capital provider, provider of funds, financier) in its relationship with clients and mudarib (investor, entrepreneur) in its relationship with depositors. The bank, on its own, may not have the capacity to assume the role of investor for different reasons such as when it doesn’t have enough funds to enter a mudarabah contract with an entrepreneur or money manager. Furthermore, the bank may lack the expertise to function as a fund manager (mudarib) with respect to mobilized funds. In both cases, this type of mudaraba allows the Islamic bank to go between investors and fund managers in order to direct funds to most productive or profitable uses.

This type of mudarabah is also known as a two-tier mudaraba.