Mudaraba of Mudarib Using Mudaraba's Money and it's Application in Islamic Banks

Ahmd Shehdeh Abu Sarhan, Wa'el mohammad Arabyat

Abstract


This research paper discusses Mudaraba of Mudarib using Mudaraba's money, and it's application in Islamic banks, reviewed scholars points of view, and their evidence with discussion it, mentioning the most commonly acceptable one. During the research we can notice that Mudarib does not have the right to use Mudaraba unless he has permission or delegation from the owner to do this. In the first case, "declared permission" then, profit will be between the owner and Mudarib only whereas in the other case, "unlimited delegation" profit will be between the owner and both the first and the second Mudarib according to the agreed condition.
Consequently, there is a difference in sharing Mudaraba between giving the owner of expoited deposits declared permission to Islamic bank to use Mudaraba and giving it unlimited delegation. In the first case, the bank will be just as an agent not Mudarib so profit will be only between the owner of deposit and Mudarib and bank can take fee in return for the agency, whereas in the other case the bank has the right to use Mudaraba according to the delegation, there upon bank act as Mudarib and profit will be among the three parties; the owner, bank, and Mudarib according to the agreed condition.

Keywords


Mudaraba, Islamic bank, Islamic Jurisprudence.

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