---
title: "What is Rabb al-mal? | IslamicOpenFinance™"
description: "The capital provider in a mudarabah, who funds the venture, shares profit by the agreed ratio and bears financial loss."
url: https://islamicopenfinance.com/glossary/rabb-al-mal/
lang: en-GB
source: "IslamicOpenFinance"
---

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

Partnership and investment

# 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

- [Bank Negara Malaysia, Mudarabah policy document, 2015: Glossary, Rabbul mal](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/) [**Mudarib** The manager in a mudarabah, who runs the venture and earns a share of profit rather than a guaranteed fee.](https://islamicopenfinance.com/glossary/mudarib/) [**Restricted mudarabah** A mudarabah in which the capital provider limits where, how or for what the capital may be invested.](https://islamicopenfinance.com/glossary/restricted-mudarabah/) [**Investment account holder** A customer who places funds in an investment account and shares in its returns and risks, rather than holding a deposit claim.](https://islamicopenfinance.com/glossary/investment-account-holder/)

**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. [Mudarib](https://islamicopenfinance.com/glossary/mudarib/)
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/)