Mudarabah Rate financial definition of Mudarabah Rate
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Rate of Mudharaba

(redirected from Mudarabah Rate)

Rate of Mudharaba

In a mudharaba contract, the agreed-upon ratio by which the parties share the profit. 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. The rate of mudharaba states exactly what portion.
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