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Mudarabah
What is Mudarabah?
Mudarabah is an Islamic finance feature that takes place between the bank, offering a specified capital price, and the Mudarib, offering management of conducting the task, service or business with a motive to earn revenue.
How does it work?
Within a Mudarabah contract, The Islamic bank of Afghanistan offers the Mudarib all the wealth to invest in a specified business. The parties who have wealth and those who have experience can enter into the contract with the bank. Either one party offers wealth or the skills with an aim of reaping halal income or revenue which will be divided in a mutually consented ratio.
How will it benefit you?
- Mudarabah offers an exclusive investment option that everyone can avail.
- Mudarabah offers a naturally strong incentive for the investor to use their resources more efficiently.
To whom it is offered?
Corporates
SMEs
Individuals