Types of mudarabah mudarabah al muqayyadah rabb ul

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Types of Mudarabah Mudarabah al- Muqayyadah Rabb-ul Mal specifies the business Restricted Mudarabah Mudarabah al- Mutlaqah Rabb-ul-Mal leaves it on Mudarib to decide Unrestricted Mudarabah Islamic Banking Musharakah & Mudarabah 32
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Multiple Mudaribs Islamic Banking Musharakah & Mudarabah 33 Mudarib A Mudarib B Rabb-ul-Mal
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Distribution of Mudarabah Profits Profit distribution ratio must be agreed at the contract time. Cannot be lumpsum or fixed amount. Cannot be expressed as specific ratio tied with investment e.g., 15% of invested capital. Profit distribution ratio can vary in different situatoins e.g., with type of business, trading commodity or location etc. Other than profit ratio, Mudarib cannot claim any salary or fee. Islamic Banking Musharakah & Mudarabah 34
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Distribution of Mudarabah Profits Profit distribution ratio must be agreed at the contract time. Cannot be lumpsum or fixed amount. Cannot be expressed as specific ratio tied with investment. Profit distribution ratio can vary in different situatoins e.g., with type of business, trading commodity or location etc. Other than profit ratio, Mudarib cannot claim any salary or fee. Only travelling allowances are allowed. In case there is a profit in one transaction and loss in another, netting will be done to arrive at net result. Islamic Banking Musharakah & Mudarabah 35
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Termination of Mudarabah Can be terminated by either of the two parties whenever they desire. This can be avoided if the contract allows termination only in certain situations during a specified period. If assets are not in cash, mudarib will be given an opportunity to sell them and then if the net result is in profit, it will be distributed as per agreed profit ratio. Islamic Banking Musharakah & Mudarabah 36
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Combination of Musharakah & Mudarabah
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Combination of Musharakah & Mudarabah In case mudarib also contributes (with the permission of Rabb-ul-Mal) it becomes a combination of musharakah and mudarabah. Here mudarib can have a share in profits & loss as ‘ Sharik ’ as well as a share as mudarib. However, the Rabb-ul-Mal becomes a sleeping partner and cannot share profits for more than his ratio of investment. Islamic Banking Musharakah & Mudarabah 38
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Types of Mudarabah Mudarabah al Muqayyadah Rabb ul Mal...

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