Issues with Combined Mudharaba and its Solutions (A Comparative Fiqh Study)


October 30, 2017
Issues with Combined Mudharaba and its Solutions (A Comparative Fiqh Study)
Dr. Abdul Majeed Muhammad Al Sawsara

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Issue

Combined Mudarabah is one of the prominent investment activities practiced by Islamic banks in which the bank enters as a third party of Mduarabah for a part of profit, as consideration, while keeping the mutual share of all the capital owners in profit or loss; hence these issues need extended study and elaboration. Herein, the research aims at contributing towards explaining the Shari’ah standpoint from the circumstances surrounding the combined Mudarabah; the research adopted descriptive and comparative approaches for reviewing the opinions of the scholar along with their evidences, besides describing the preponderating view. The research prominently concluded that: the bank shall be deemed as third party, it has the liberty to deal with others by virtue of unconditional contract of Mudarabah, the bank deserves share in profit for its efforts and as per the agreement in between; commingling of the capital from capital owners is also permissible in a combined Mudarabah as it is also permissible to distribute the profit on the basis of constructive valuation

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