Al-Mudharaba al-Mutlaqah

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Al-Mudharaba al-Mutlaqah

In Islamic finance, a mudharaba contract that places no requirements or constraints on the entrepreneur. In a mudharaba, a provider of capital agrees to invest in an entrepreneur in exchange for a portion of the profit of the entrepreneur's venture. Al-mudharaba al-mutlaqah specifies which party receives what portion of the profit, but leaves all other things to the entrepreneur's discretion.