Definition of terms
Mudarabah (Silent Partnership)
This is a contract between the capital provider, in this instance the lB/|BU, and an entrepreneur (i.e., client) whereby the capital provider (rab-al-maal) contributes capital to an enterprise or activity to be managed by the entrepreneur (mudarib).
Profits are shared in an agreed ratio while losses are to be borne solely by the capital provider unless the losses are due to the mudarib's misconduct, negligence or breach of contract.