Under the Islamic banking method of mudarabah, when an Islamic bank lends money to a business, rather than charging that business interest on the loan, it takes a share in the profits that are derived from the investment.

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Mudarabah is a profit-sharing arrangement in Islamic finance where the bank provides capital and the business provides expertise, sharing profits according to a pre-agreed ratio, without charging interest.

Under the Islamic Banking Method of Mudarabah, When an Islamic