MUDARIB Meaning and
Definition
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Mudarib is an Arabic term used in Islamic finance and business partnerships. It refers to a person or entity acting as the managing partner or entrepreneur in a mudarabah contract. A mudarabah contract is a form of profit-sharing venture between two parties, where one party provides capital (referred to as the "rab al-mal") and the other party contributes expertise, labor, and management skills (known as the "mudarib").
In this context, the mudarib is responsible for the day-to-day operations and management of the venture, making business decisions, and utilizing the provided capital with the intention of generating profits. The mudarib is also responsible for bearing any losses incurred during the course of the venture, except in cases of negligence or misconduct.
The relationship between the rab al-mal and the mudarib is based on mutual consent, trust, and fairness. The mudarib is entitled to a share of the profits, as agreed upon in the mudarabah contract, which is typically a predetermined percentage. However, the mudarib does not share in any losses but may lose their expected share of the profits.
Mudarib plays a crucial role in Islamic finance, as they provide entrepreneurship skills and management expertise needed to operate businesses. The concept of mudarib is aimed at encouraging entrepreneurship, risk-taking, and wealth creation while adhering to Islamic principles of fairness and profit-sharing. It helps in promoting partnership and cooperation between capital providers and skilled entrepreneurs.
Common Misspellings for MUDARIB
- nudarib
- kudarib
- judarib
- mydarib
- mhdarib
- mjdarib
- midarib
- m8darib
- m7darib
- musarib
- muxarib
- mucarib
- mufarib
- murarib
- muearib
- mudzrib
- mudsrib
- mudwrib
- mudqrib
- mudaeib
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