Does the speculator bear the entire loss in the event of no prior agreement on how to distribute losses between him and the capital owner, knowing that the agreement was for 20% of the profits for the speculator in return for 50,000 Saudi Riyals, and the amount has deteriorated to 20,000 Saudi Riyals?

In a mudarabah contract, the loss is borne by the owner of the capital. As for the mudarib (the working partner), he only loses his effort and work. It is not permissible to stipulate that he bear any part of the loss unless he has been negligent or violated the terms of the agreement. If a delegate director invests part of the association's funds (other than zakat) in a stable market with the intention of public interest, there is no blame on him if the money is lost, but he is liable if there was negligence on his part or if the investment was prohibited. The Permanent Committee for Issuing Fatwas has permitted associations to trade with their funds, other than zakat, for their own benefit.