A mudarabah contract banking method of Islamic banks is similar to a profit-sharing scheme.

Question

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Mudarabah is a profit-sharing partnership where one party provides funds (called the "rab al-mal" or capital provider) and the other party provides expertise and labor (called the "mudarib" or entrepreneur). The profit generated from the project is shared between the two parties according to an agreed-upon ratio. This is a common method used by Islamic banks to finance projects while also adhering to Shariah principles.

A Mudarabah Contract Banking Method of Islamic Banks Is Similar