Mudaraba/Mudarabah/Mudharabah

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Trust Financing. This is an agreement made between two parties, one of whom provides 100% of the capital for a project and has no control over the management of the project; another party, known as a Mudarib, manages the project using his entrepreneurial skills. Profits arising from the project are distributed according to a predetermined ratio, and financial losses are borne by the provider of capital.

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