A type of mudaraba (مضاربة) that involves a bilateral relationship between one worker (mudarib) and one provider of funds (rab al-mal). Both parties are entitled to their respective shares in the profits generated by the venture (the business funded by mudaraba capital) as agreed by the two parties at time of contracting. However, losses, if occurred, shall be borne solely by the capital provider unless in case of negligence or misconduct of the worker.
This type of mudaraba is not common in the operations of Islamic banks and financial institutions.
Simple mudaraba is also known as single mudaraba, bilateral mudaraba, or ordinary mudaraba.
