What are the most important Sharia requirements for a Mudarabah contract between the capital provider and the Mudarib?
is when a person gives money to another to trade with it, on the condition that the profit be shared between them according to their agreement. Among its most important Shariah conditions are:
1. That the distribution of profit be known on the basis of a circulating percentage of the profit for both the capital owner and the Mudarib (not from the capital itself), and that the profit not be unknown or fixed.
2. That the loss be borne solely by the capital, and the worker not bear any part of it unless his transgression or negligence is proven. Therefore, guaranteeing the capital is not permissible.
3. That the capital be a known amount in cash, and that it be specifically designated and not a debt.
4. That the worker has absolute discretion in managing the capital, and the capital owner does not restrict his work.
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