Rabb al-mal
The capital provider in a mudarabah, who funds the venture, shares profit by the agreed ratio and bears financial loss.
Rabb al-mal is the owner of the capital in a mudarabah. The rabb al-mal provides funds to the mudarib, shares profit at the agreed ratio and bears financial loss, unless the loss is caused by the mudarib's misconduct, negligence or breach of terms. When customers place money in a mudarabah investment account, they act as rabb al-mal and the bank acts as mudarib.
Sources
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
MudarabahA partnership of capital and work: profit is shared by an agreed ratio, while financial loss falls on the capital provider.MudaribThe manager in a mudarabah, who runs the venture and earns a share of profit rather than a guaranteed fee.Restricted mudarabahA mudarabah in which the capital provider limits where, how or for what the capital may be invested.Investment account holderA customer who places funds in an investment account and shares in its returns and risks, rather than holding a deposit claim.