СС 13 - Мударабах

The aim of this standard is to explain the Shari’ah rulings for restricted and unrestricted Mudarabah, whether the Islamic financial Institution (Institution/ Institutions) is acting in the capacity of a Mudarib (entrepreneur) or in the capacity of an investor.

The word (Institution/Institutions) is used here to refer, in short, to Islamic financial institutions including Islamic Banks.

Scope of the Standard

This standard covers Mudarabah contracts between the Institution and the other entities or individuals. It also covers joint investment accounts and special purpose investment accounts if these accounts are administered on the basis of Mudarabah. The standard does not cover Sukuk of Mudarabah (Mudarabah Certifi- cates) or other types of partnership contracts, as these are covered by sep- arate standards. 2. Definition of Mudarabah Mudarabah is a partnership in profit whereby one party provides capital (Rab al-Mal) and the other party provides labour (Mudarib). 3. Agreement of Mudarabah Financing