Mudarabah

Mudarabah is a Sharia-compliant profit-sharing partnership between a capital provider (Rabb-ul-Mal) and an entrepreneur (Mudarib). Profits are shared based on a pre-agreed ratio while losses are borne by the Rabb-ul-Mal unless caused by negligence.

Characteristics:

• Operates on mutual trust and partnership principles.
• Profits distributed based on predetermined sharing ratios.
• Losses borne by capital provider unless due to Mudarib's negligence.
• The Mudarib is compensated through profit-sharing, not fixed wages.
• Investments limited to Sharia-compliant sectors.

The Rabb-ul-Mal imposes conditions, limitations, or guidelines on how the funds are invested. The Mudarib must strictly follow these instructions.

Features:

• Investment discretion limited to capital provider’s instructions.
• Funds restricted by sector, geography, duration, or project type.
• Mudarib operates strictly within contractual boundaries.
• Suitable for controlled, low-risk investments.
• Ensures transparency and alignment with investor goals.

The Mudarib has full discretion to manage the capital within Sharia-compliant ventures without prior approval from the capital provider.

Features:

• Full investment autonomy within Sharia guidelines.
• Diversified investments across multiple sectors or asset classes.
• Encourages innovation and optimal portfolio management.
• Requires high trust, transparency, and accountability.
• Suitable for long-term, performance-driven investments.

Sharia-compliant savings account where profits are shared based on actual business performance.

Key Features:

• Flexible deposits and withdrawals.
• Profit sharing based on maintained balance.
• Operable with or without a passbook.

Benefits:

• Performance-based, halal returns.
• Encourages ethical investment practices.
• Promotes financial inclusion.

Savings account promoting sustainable agricultural growth.

Key Features:

• Operates under Mudarabah principles.
• Matches seasonal income cycles.
• Profits distributed biannually.
• Invests only in ethical sectors.

Benefits:

• Boosts customer profits through Sharia-compliant investments.
• Encourages regular saving habits.
• Supports modern farming technologies.
• Builds rural income stability.

Rotating savings groups with structured contribution cycles.

Key Features:

• Pooled member accounts for collective savings.
• Structured contribution cycles ensure deposit stability.
• Bank provides support like collection services.
• Profits distributed biannually based on investment outcomes.

Benefits:

• Increases members’ profits through shared success.
• Bridges informal savings with formal Islamic banking.
• Promotes community wealth creation.

Tailored product empowering women through Sharia-compliant savings.

Key Features:

• Open to women from all professions and businesses.
• Profits distributed biannually.
• Family-oriented savings incentives.
• Personalized services like doorstep cash delivery.

Benefits:

• Enhances women’s profit.
• Promotes entrepreneurship and financial independence.
• Supports family financial goals.

Savings account for cooperatives pooling funds in ethical ventures.

Key Features:

• Managed under Mudarabah contracts with biannual profit distribution.
• Flexible deposits and withdrawals.
• Support services like cash collection.
• Funds invested in socially responsible projects.

Benefits:

• Increases cooperative profits through collective investment.
• Strengthens financial sustainability.
• Promotes transparency in fund management.

Performance-based investment account for stable, Sharia-compliant profit growth over fixed periods.

Key Features:

• Short-, medium-, and long-term tenures.
• Formal contracts with defined maturity dates.
• Provides certificates of deposit.
• Fully Sharia-compliant.

Benefits:

• Maximizes profits through ethical, performance-driven investments.
• Encourages disciplined wealth growth.
• Predictable, stable returns.
• Transparent profit management builds investor confidence.