What Does Mudaraba (Profit-Sharing) Mean in Arabic?
مُضَارَبَة
mudaraba
Root: ض ر ب
Mudaraba (Profit-Sharing) Mudaraba is an Islamic profit-sharing partnership where one party (rabb al-mal) provides capital and the other (mudarib) provides expertise and management. Profits are shared at a pre-agreed ratio; losses fall on the capital provider while the manager loses their time and effort. It is one of the foundational instruments of Islamic banking and resembles modern venture capital. It enables investment without charging riba.
Frequently Asked Questions about Mudaraba (Profit-Sharing)
What does Mudaraba (Profit-Sharing) mean in Islam?
Mudaraba is an Islamic profit-sharing partnership where one party (rabb al-mal) provides capital and the other (mudarib) provides expertise and management. Profits are shared at a pre-agreed ratio; losses fall on the capital provider while the manager loses their time and effort. It is one of the foundational instruments of Islamic banking and resembles modern venture capital. It enables investment without charging riba.
What is the Arabic root of Mudaraba (Profit-Sharing)?
The Arabic root letters of Mudaraba (Profit-Sharing) are ض ر ب.
Related Words
حَلَال
Halal (Permissible)
Halal refers to anything permissible or lawful under Islamic law. It applies to food, drink, financial transactions, and behavior. The Quran repeatedly instructs believers to eat from what is halal and good (tayyib). Halal is the opposite of haram (forbidden) and forms one of the five rulings (ahkam) of Islamic jurisprudence.
حَرَام
Haram (Forbidden)
Haram refers to anything strictly forbidden by Islamic law. Committing a haram act is a sin deserving punishment in both this world and the hereafter. Major categories include pork, alcohol, usury (riba), adultery, and murder. Islamic jurisprudence identifies five rulings (ahkam); haram is the most severe prohibition.
فَرْض
Fard (Obligatory)
Fard is an obligatory religious duty in Islam whose performance is rewarded and whose neglect is sinful. The five pillars of Islam — shahada, salah, zakat, sawm, and hajj — are all fard. Fard is divided into fard ayn (individual obligation) and fard kifaya (collective obligation fulfilled when enough people perform it).
وَاجِب
Wajib (Necessary)
Wajib in Hanafi jurisprudence is an obligatory act slightly below fard in rank, established by probable (zanni) rather than definitive (qati) evidence. Neglecting it is sinful but less severe than neglecting fard. Examples include witr prayer, udhiyya (sacrifice), and sadaqat al-fitr. In Shafi'i, Maliki, and Hanbali schools, wajib and fard are synonymous.
سُنَّة
Sunna (Prophetic Practice)
Sunna refers to the words, actions, and tacit approvals of the Prophet Muhammad. It is the second primary source of Islamic law after the Quran. In jurisprudence, sunna as a legal ruling means a recommended act whose performance is rewarded but whose omission is not punished. It is divided into sunna mu'akkada (emphasized) and ghair mu'akkada (non-emphasized).
مَكْرُوه
Makruh (Disliked)
Makruh refers to acts that are disapproved or disliked in Islamic law but not explicitly forbidden. In Hanafi jurisprudence it is divided into makruh tahriman (closer to haram) and makruh tanzihan (mildly disliked). Avoiding makruh is praiseworthy; committing it may incur minor sin depending on the category.