Mudarabah/مضاربۃ In the Light of the Holy Qur’An and
Sunnah/سُنَّۃ of the Messenger of Allah (صَلَّی للهُ عَلیۡہِ وَ
آ لِہٖ وَسَلَّم) Munir Ahmad Mughal Punjab University Law
College; Superior Law College; LIMIT Law College, Lahore January
10, 2012 Mudarabah/مضاربۃ is an Arabic term of business law.
Grammatically, the word Mudarabah/مضاربۃ is on the scale of
Mufa`alah/مفاعلۃ . It is from the chapter of mufa`al/باب مفاعل
which signifies mutual action of two persons. In business,
mudarabah is a kind of business where there are two parties,
otherwise qualified to enter into a contract, joining in
business in the manner that one gives his capital (ra’s al-mal/)
رأس المال and the other his services (i.e., the abilities, the
capabilities, the capacity, the skill and the doing of all sorts
of work required by such business termed as effort or labour or
mihnat/محنۃ ) and they (both the partners in Mudarabah/مضاربۃ
business) share the profit according as to their mutual lawful
agreement. However, in case of any loss i