Mudaraba

Mudaraba,

Definition of Mudaraba:

  1. A pre-Islamic, Arabic type of finance in which one individual provides start-up capital to another individual who will do the actual work. As a financial agreement between financier and entrepreneur, a one-tiered mudaraba exists; a two-tier mudaraba modifies this by introducing an intermediary between these two principals.

Meaning of Mudaraba & Mudaraba Definition