Consider an economy where usury and speculation are prohibited. Imagine a business world where risks are borne by different economic actors. In other words, we see such an economy is not built on capital alone, but on real activity and event: real activity means real growth. Religion has served society and the economy and business since antiquity. But our stubbornness to create virtual wealth without any equity makes us lose sight of its importance. If we are going through economic crises, some of which are worse than others, it is simply because of a lack of equity in the way we earn money. Islamic finance is the perfect proof and the only solution that individuals can become rich without selling their morals. true and fair. Can you believe it ?

 

 

What is Mudarabah in islam ?

 

 

 

A mudaraba in islam or passive partnership is a contract between two parties: the owner of the capital (rabb-al mal) and the entrepreneur (manager) called mudarib. The profits are divided between the parties according to the ratio determined at the time of signing the contract. The financial loss is borne by the capital owner; the manager’s loss is the opportunity cost of his own work, which fails by not generating a surplus. Of course, except in cases of default or negligence, the manager does not have to guarantee the funds invested. Moreover, although the funder may specify in the terms of the contract certain conditions that the manager accepts, it has no right to interfere in the day-to-day work of the mudarib.

 

 

 

What is mudaraba in islam in other way ?

 

 

 

Mudaraba or passive partnership is a contract between two parties: the owner of the capital (rabb-al mal) and an entrepreneur (manager) called mudarib. The profit is distributed between the two parties according to a ratio to be determined at the time of signing the contract. The financial loss falls on the owner of the capital; the manager’s loss is the opportunity cost of his own labour force that has failed to generate a surplus income. Of course, apart from breach of contract or negligence, the manager does not have to guarantee the capital invested. Furthermore, although the provider of funds may impose certain conditions in the terms of the contract which the manager accepts, he has no right to interfere in the daily work of the mudarib.

 

 

we should understand first

 

 

  1. Mudharabah Finance Islamic
    The mudharabah (Arabic: مضربة‎) is a type of finance that is based on the Islamic law. In this form of financing, the borrower gives the lender a certain amount of money and promises to pay back the principal plus interest over time. This means that the lender has no right to take possession of the property until the loan is paid off.
  2. Mudarabah Finance
    In Islam, a mudarabah is a contract between two parties where one party agrees to lend money to the other at a specified rate of interest. The term mudarabah comes from the Arabic verb muda’a, meaning “to give”.
  3. Mudarabah Contract
    A mudarabah contract is a specific kind of financial transaction governed by Islamic law. A mudarabah contract can be used to raise capital, fund business activities, or provide funds for education.

 

 

This video explains islamique Mudharabah concept through simple language and science based approach. This video is not about selling anything, but to educate people about mudharabah in a positive way.

 

 

https://youtu.be/k9E3dqWksPk

 

 

What guarantees that it is Sharia-compliant?

 

 

 

It is essential to be able to say what guarantees its compliance with the sharia, because it is an Islamic product. The answer is simple. Islamique mudaraba means no interest at all on the front and back end. Therefore, banks and clients can only benefit financially if the financial operations generate profits. If not, the banker and the client bear the loss. The distribution of profits is determined when the contract is signed, not when the profit is realized. Moreover, transactions are only Sharia-compliant if they are risky. Otherwise, as long as profits are guaranteed, the financing is illegal from the start. In the end, financing models are worthless without religious oversight. Therefore, the religious committee within the bank has the authority to rule on the legality of funding activities at the religious level. In other words, the bank cannot finance a project that is rejected by the religious council.

 

 

hope we provide a simple way to let you understanding the hole meaning of islamique mudharaba

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