What Is Mudaraba in Islamic Finance and Banking?
Types of Mudaraba: There are two types of mudaraba mentioned below: (1). Al Mudaraba Al-Muqayadah: Rab’ul-Maal can designate a specific business or place for the Mudaarib, in which case he will invest the money in that specific business or place. This is called Al Mudaraba Al-Muqayadah (Restricted Mudaraba). (2). Al Mudaraba Al Mutlaqah: However, when … Read more