Mudarabah definition

Mudarabah means a form of partnership where one partner provides funds, while other provides skill, expertise and management.

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Mudarabah means a contract of profit sharing between the Customer(s) as owner of the capital and HLISB as the entrepreneur on profit sharing basis, whereby the Customer(s) shall place a specified sum of money with HLISB for a specific tenure, and HLISB is entrusted to utilize the capital for a business venture without any intervention from the Customer(s) to generate income which will be distributed according to profit sharing ratio. Any losses arising from the investment will be borne by the capital provider unless if proven it is due to willful misconduct and negligence by the entrepreneur.

Mudarabah. , means a contract between a rabbul mal and a mudarib under which the rabbul mal provides capital to be managed by the mudarib and any profit generated from the capital is shared between the rabbul mal and mudarib according to mutually agreed profit sharing ratio (PSR) whilst financial losses are borne by the rabbul mal provided that such losses are not due to the mudarib’s misconduct (ta`addi), negligence (taqsir) or breach of specified terms (mukhalafah al-shurut)

Examples of Mudarabah in a sentence

The PIFI agrees that all income of general pool of assets shall be applied in deriving the profit to the Mudarabah participants in the general pool including SBP and that the profit allocation would be according to “Instructions for Profit & Loss Distribution and Pool Management for Islamic banking Institutions (IBIs)” issued vide IBD Circular No.3 dated November 19, 2012, as amended from time to time.
WHICH the parties have executed this Mudarabah (Investment Partnership) Agreement in the manner below the day and year first above written.
The saving investment account and Al Lulu account are accounts in which the percentage of deposited funds is invested on the Absolute Mudarabah basis.
In consideration of the State Bank of Pakistan having deposited/invested in (Name of the PIBI) the sum of Rs. (Rupees only) under the Islamic Temporary Economic Refinance Facility for Plant and Machinery, we hereby authorize SBP to debit our current account being maintained with SBP BSC, (City) for any amount due, as per the rules of Mudarabah, under the schedule1.
Islamic Naya Pakistan Certificate (INPC)– a certificate representing a proportionate share of the Investor in the Mudarabah based investment pool.

More Definitions of Mudarabah

Mudarabah means the principle in accordance with which a ▇▇▇▇▇’ah contract is concluded where the client provides capital in the form of a deposit and the Bank provides management and entrepreneurial skill, such capital managed by the Bank by investing at its discretion in ▇▇▇▇▇’ah-compliant assets or investments;

Mudarabah as applied in this product means a contract of profit sharing between the IAH(s) as owner of the capital and HLISB as the fund manager on profit sharing basis, whereby the IAH(s) shall place a specified sum of money with HLISB for a specific tenure, and HLISB is entrusted to utilize the capital for a business venture without any intervention from the IAH(s) to generate income which will be distributed according to profit sharing ratio. Any losses arising from the investment will be borne by the capital provider unless there is proven willful misconduct and negligence by the fund manager. HLISB may suffer losses in term of costs and time.

Mudarabah means a partnership in profit in which one party provides capital (“Rab-al-Maal” or “Mudarabah Investor”) and the other party provides its expertise, skill and effort in the investment of such capital (“Mudarib” or “Mudarabah Manager”). Profit, if any, is shared between the parties as per an agreed common ratio. Unless financial loss (if any) is not due to the Mudarib‘s negligence, infringement or violation of the Terms and Conditions of the contract, it shall be borne solely by the Mudarabah investor while the Mudarib will lose his efforts and time spent.

Mudarabah means a form of partnership where one partner provides funds while the other provides expertise and management.

Mudarabah means a contract where the Investor appoints the Bank (also known as the “Mudarib” or “Entrepreneur”) for the fund which has been deposited or will be deposited by the Investor for the Investment. The profits from the Investment will be shared between the Bank and the Investor according to the agreed PSR. Any losses from the investment are to be borne by the Investor except in cases where there is direct evidence of misconduct (ta`addi), negligence (taqsir) or breach of specified terms (mukhalafah al-shurut) by the Bank in managing the funds.

Mudarabah means a partnership established in accordance with the principles of ▇▇▇▇▇’ah between two or more persons whereby one party provides capital (rab al-maal) and the other party provides expertise (mudarib) with a view to sharing profits (in a pre- agreed ratio) gained as a result of administration of the capital by the mudarib.

Mudarabah means an arrangement that complies with the precepts of Shari’a law that is concluded between a bank, or portfolio of a collective investment scheme, and any other person whereby—