Productive Mudharaba(redirected from Productive Mudarabahs)
In Islamic finance, a contract under which the owner of raw material gives the material to another person, who turns it into a finished product. When the product is sold, the parties share the profit according to an agreed-upon ratio. Some sharia scholars disapprove of a productive mudharaba, arguing that the person who fashions the finished product is an employee and should receive a wage.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved