Islamic Fiqh > Companies and leases > Mudaraba (capital-management partnership) > Mudaraba: pillars and conditions
Updated on 06 October 2026 at 10:50 PM
The mudaraba, also called qirad or muqarada, is a contract by which the owner of a capital (rabb al-mal) entrusts it to a worker (mudarib) so that he may trade with it, the parties sharing the profit according to a stipulated clause while loss falls on the capital alone. The jurists of the four schools have laid down its conditions concerning the form of the contract, the two parties, the capital, the profit and the work. This chapter sets out these rules and their differences, according to the classical sources of each school.