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Memorandum of Understanding for Mudarabah Financing

Mudarabah is a form of sharakah (partnership) in profit (ribh) whereby one party (rab al-mal) provides capital and the other…

Mu’amalah

Another designation for mudarabah (mudarabah/ mudharaba/ mudharabah); by definition, it is a partnership (sharakah) in profit whereby one party (rab…

Mu’amala

Another name for mudaraba (mudarabah/ mudharaba/ mudharabah); by definition, it is a partnership (sharakah) in profit whereby one party (rab...

Promissory Note

A type of commercial paper that constitutes a certificate whereby the issuer promises to pay a specific amount of money…

Ras al-Mal

The capital that is provided by rab al-mal in a mudaraba contract. Put another way, it is the amount of…

Qirad Sukuk

A form of musharaka sukuk that is structured based on the contract of muqaradah (mudaraba), whereby the capital (ras al-mal) is…

Muqaradah Sukuk

A form of musharaka sukuk that is structured based on the contract of muqaradah (mudaraba), whereby the capital (ras al-mal) is…

Capital Provider

The provider of funds in a contract of mudaraba. The capital provider (in Arabic rab al-mal) hands over mudaraba capital…

Redeemable Capital

Capital (ras al-mal) that is received on a profit-sharing basis or participation basis (musharakah). This capital has the characteristics of...