Mudarabah Islamic Corporation Conditions and their Appropriateness to Islamic Banks Policies

Abstract

Mudarabah contract is one of the legal contracts for the development of fund. However, the emergence of contemporary banks has changed the traditional form of investment in such contracts. This study thus attempts to answer the following question: are the conditions of the Mudarabah contract in Islamic jurisprudence appropriate to Islamic banks Policies? This is done through the explanation of the conditions for Mudarabah from an Islamic jurisprudential and economic perspective. The suitability of those conditions for Islamic banks is also assessed in this study though the views of Islamic sects. Besides, the study identified the problems of implementing the Mudarabah contract in Islamic banks, and the solution of these problems through the contributions of the jurists, in line with the actual status of the banking business at the present time. The study concludes that the Mudarabah contract is in consistency with the contemporary Islamic banks and therefore can be of great use in today's world.