All terms
Glossary
Mudarib
Managing partner
The manager in a Mudarabah, who contributes effort and management and shares in profit but not financial loss (absent misconduct).
The mudarib runs the venture, contributing skill, effort, and management rather than capital. They earn a pre-agreed share of realized profit for that work.
The mudarib does not bear financial loss from ordinary business outcomes — that falls on the rabb-ul-mal. However, the mudarib is liable for losses caused by their own misconduct (ta'addi), negligence (taqsir), or breach of the agreed terms.
Related terms
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