A subclass of musharaka sukuk. Mudaraba sukuk are, by definition, certificates that represent ownership in projects or activities managed on the basis of mudaraba. In mudaraba contract, one of the partners or an outsider is appointed to act as the mudarib who takes on the management of mudaraba operations. Mudaraba sukuk are issued by the mudarib, while the subscribers are the owners of mudaraba capital which is built up by the funds realized from subscription. The sukuk holders become the owners of the mudaraba assets and therefore are entitled to an agreed-upon share of the profits in their capacity as rab al mal (provider of capital).

Shari’a permits trading in mudaraba sukuk in secondary markets provided subscription is closed, sukuk are allotted, and operations are commenced in earnest.

Mudaraba sukuk are also referred to as susuk al mudaraba.