---
title: "What is Mudarib? | IslamicOpenFinance™"
description: "The manager in a mudarabah, who runs the venture and earns a share of profit rather than a guaranteed fee."
url: https://islamicopenfinance.com/glossary/mudarib/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Partnership and investment](https://islamicopenfinance.com/glossary/#partnership)

Partnership and investment

# Mudarib

The manager in a mudarabah, who runs the venture and earns a share of profit rather than a guaranteed fee.

The mudarib is the entrepreneur who manages mudarabah capital on behalf of the capital provider. The mudarib earns only a share of any profit, at the agreed ratio, and does not bear financial loss unless it results from misconduct, negligence or breach of the contract's terms. Its role is fiduciary, and Bank Negara Malaysia's policy document describes mudarabah as a contract based on a fiduciary relationship.

## Sources

- [Bank Negara Malaysia, Mudarabah policy document, 2015: Glossary, Mudarib; nature of mudarabah](https://www.bnm.gov.my/documents/20124/938039/Mudarabah.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Mudarabah** A partnership of capital and work: profit is shared by an agreed ratio, while financial loss falls on the capital provider.](https://islamicopenfinance.com/glossary/mudarabah/) [**Rabb al-mal** The capital provider in a mudarabah, who funds the venture, shares profit by the agreed ratio and bears financial loss.](https://islamicopenfinance.com/glossary/rabb-al-mal/) [**Fiduciary risk** The risk that an institution fails to meet the standards that apply to its duties as trustee or manager of others' funds.](https://islamicopenfinance.com/glossary/fiduciary-risk/) [**Profit sharing ratio** The agreed split of profit between partners, expressed as a ratio of actual profit, never as a fixed sum or a share of capital.](https://islamicopenfinance.com/glossary/profit-sharing-ratio/)

**Partnership and investment**

1. [Mudarabah](https://islamicopenfinance.com/glossary/mudarabah/)
2. [Musharakah](https://islamicopenfinance.com/glossary/musharakah/)
3. [Diminishing musharakah](https://islamicopenfinance.com/glossary/diminishing-musharakah/)
4. [Rabb al-mal](https://islamicopenfinance.com/glossary/rabb-al-mal/)
5. [Profit sharing ratio](https://islamicopenfinance.com/glossary/profit-sharing-ratio/)
6. [Restricted mudarabah](https://islamicopenfinance.com/glossary/restricted-mudarabah/)
7. [Unrestricted mudarabah](https://islamicopenfinance.com/glossary/unrestricted-mudarabah/)
8. [Wakalah bil-istithmar (investment agency)](https://islamicopenfinance.com/glossary/wakalah-bil-istithmar/)

[All 221 terms](https://islamicopenfinance.com/glossary/)