All terms
Glossary
Rabb-ul-mal
Capital provider
The capital provider in a Mudarabah, who contributes the funds and bears financial loss up to the capital committed.
The rabb-ul-mal supplies the capital (ra's al-mal) for the venture but does not manage day-to-day operations. In exchange, they receive an agreed share of any realized profit.
The rabb-ul-mal bears the financial downside: if the venture loses money, the loss falls on the capital provider up to the amount committed — except where it results from the manager's misconduct, negligence, or breach.
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