Mudaraba

Partnering for Profit

Mudaraba is a unique and ethical partnership contract where one party provides the capital and the other provides the expertise and labor to run a business. It's a powerful tool for financing entrepreneurial ventures and growing a business without resorting to conventional interest-based loans.

Ethical Partnership

Profit shared fairly, no interest involved

Grow Without Debt

Your business runs, profits are shared

Shared Success

We succeed when you succeed

What Is Murabaha?

Mudaraba is a trust-based partnership where Amal Takaful provides capital, and you (the Mudarib) provide effort, management, and business skills.

Profits are shared as agreed. You take no financial loss unless due to mismanagement. Ideal for startups, traders, or those with experience but no cash.

Example:

You wants to open a small bakery but you don’t have enough money. We provides you with the capital you need to start the business.

You contribute your time, skills, and effort to run the business.
We provide the capital.
We agree upfront on how to share the profits (for example: 70% to you, 30% to us).

If the bakery makes a profit, We both share according to agreed ratio.

If there’s a loss, we loses the money invested, and you only loses her effort and time — you doesn’t owe any debt.

Key Benefits:

Risk-Sharing: Unlike a traditional loan, Mudaraba is a genuine partnership where we share in the risks and rewards of the business.
Fair & Transparent: The profit-sharing ratio is agreed upon upfront, and there are no hidden fees or interest payments.
Empowering Entrepreneurs: It provides a great opportunity for skilled individuals to start or grow a business, even if they lack the initial capital.
Shariah-Compliant: The contract is based on the principles of Islamic finance, avoiding all forms of interest (riba).

Mudaraba is a testament to our commitment to supporting your entrepreneurial spirit and fostering genuine economic partnerships in our community.

How the Partnership Works

We Provide the Capital

As the Rab al-Mal (financier), Amal Microfinance provides the full capital needed for the venture.

You Provide the Expertise

You, as the Mudarib (entrepreneur), manage the business, using your skills and hard work.

Profit Sharing

The profits generated from the business are shared between us based on a pre-agreed ratio.

Loss Sharing

In the event of a financial loss, it is borne by the capital provider (Amal Microfinance), not the entrepreneur, as long as the loss was not due to your negligence or misconduct.

Who Mudaraba Is For

If you have the skills and ideas but lack the capital, Mudaraba is for you.

Young Entrepreneurs

Ambitious youth with business ideas but lacking startup capital

Traders & Artisans

Small-scale traders and skilled workers needing fund to grow

Women-led Ventures

Women entrepreneurs seeking financing to expand their projects

Freelancers & Consultants

Professionals who need financial support to scale their work

Talents

Talented individuals ready to run a business if given the startup funds

Community Startups

New ventures needing shared capital to begin operations

Ready to Grow Your Business?

Partner with Amal Takaful through Mudaraba and turn your skills into shared success—profit, not debt.

Frequently Asked Questions (FAQ)

How is your Mudaraba product different from a conventional business partnership?

In Mudaraba, we provide 100% of the capital, and you provide the expertise. The key difference is that any financial loss (not due to your negligence) is borne solely by us as the capital provider, which reduces your risk as the entrepreneur.

Do I need to provide collateral or security?

No. Mudaraba does not require collateral because it is based on trust, transparency, and partnership.

How long does a Mudaraba agreement last?

The duration depends on the type of business and is agreed upon before starting — it can be short-term or long-term.

Can I exit a Mudaraba contract early?

Yes, but both parties must agree. Any profits earned up to that point are shared as per the agreed ratio.

What types of businesses qualify for Mudaraba?

Any Shariah-compliant business, such as farming, trading, transport, small manufacturing, services, or startups. Haram businesses are not allowed.

Is Mudaraba similar to taking a loan?

No. Unlike a loan, Mudaraba is a partnership. There is no interest or fixed repayment. You share profits instead of paying debt.

Why choose Amal Takaful for Mudaraba?

We provide ethical, interest-free financing, full transparency, and support to help your business succeed.

Apply for Murabaha

Apply Now in 3 Easy Ways. Choose the method that works best for you: