Mudarabah partnership


A: Any loss in Mudarabah is on the capital; the trading party does not bear any of it if they do not commit transgression or negligence, because the loss is a decrease in the capital, which is the property of its owner. It is, therefore, only the owner who bears the loss, but they both share in any growth on the capital or profit, according to the agreement that they made, provided that it is a publicly known amount of the profit, such as one-half, one-third, or other. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.


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