Mudarabah: A Special Partnership

financeWhat is Mudarabah?

It is a special kind of partnership, where one partner gives money to another for investing it in a commercial enterprise. The investment comes from the first partner (Rabb-ul-mal), whilst the management and work is the exclusive responsibility of the other partner (Mudarib).

How many types of Mudarabah are there?

There are two main types of Mudarabah:

(1) Restricted Mudarabah, where the investor specifies a particular business for the manager, who may then invest in that particular business only.

(2) Unrestricted Mudarabah, where the investor allows the manager to invest in any type of business.

How will the profits be distributed?

  • Before forming Mudarabah, the parties should agree about a definite proportion of profit, to which each one of them would be entitled.
  • The investor and the manager can share the profit equally or they can allocate different proportions.
  • They cannot allocate a fixed, lump amount, nor can they allocate a fixed percentage of the capital.
  • Different proportions of the profit can be agreed to under different situations, e.g., it can be agreed that the manager can get 35% of the profit, if he works in his hometown. If he works in another town, he can get 50% of the profit.
  • The manager cannot draw any periodical salary or fee for the work done by him for Mudarabah. However, Imam Ahmad has allowed that the manager draws his daily expenses of food from the Mudarabah account. Hanafi jurists, on the other hand, have allowed that the manager draws his expenses, if he is on a business trip outside his own city.

What happens when Mudarabah incurs both a profit and a loss?

In such situation, the profit shall be used to offset the loss. Then, the remainder, if any, shall be distributed between the partners, according to the agreed-upon ratio.

What roles does the Mudarib play?

  • A trustee responsible to look after the investment.
  • An agent for the investor, as he purchases from the funds provided by the investor.
  • A partner, who shares in any profit.
  • Liable to provide for any loss to Mudarabah, due to his actions.
  • An employee, who receives salary, when Mudarabah becomes void.

When does Mudarabah terminate?

  • When the period specified in the contract expires.
  • When either of the two parties informs the other party about the termination of the contract by serving a notice.

What happens when Mudarabah is terminated?

  • All the liabilities are paid off and receivables collected.
  • Assets are liquidated to determine the value of Mudarabah.
  • The investor receives back the amount he / she invested.
  • The balance amount is to be distributed as profit, according to the agreed ratio. If no balance is left, the manager does not get anything.

How do we apply the Mudarabah model for financing purposes?

Mudarabah can be applied to project financing business models, opening letters of credit without margins. The Mudarabah model can also be combined with the Musharakah model for financing large enterprises, import and export businesses (pre-shipment financing), etc.


  • Usmani, Muhammad Taqi. “An Introduction to Islamic Finance.” Idarat ul-Marif, Karachi, Pakistan.
  • Usmani, Dr. Muhammad Imran Ashraf. “Meezan Bank’s Guide to Islamic Banking.” Darul-Ishaat, Karachi, Pakistan.

Children Reaching Puberty

pubertyCulturally, aspects like puberty are considered taboo. It is considered to be a matter of grave shame to even mention it, let alone explain it to our growing children. Consequently, our ignorance and false beliefs inflict most damage to our children, who at their tender age of innocence and discovery find themselves in dark alleys. They don’t know whom to turn to for their questions and are left to their own devices to feed their curiosity. The most comfortable arrangement for parents is usually to keep a tight lid on such sensitive issues or pass the buck over to teachers, friends, and other sources to take ownership.

This is a vital educational process, and parents cannot sit back disconnected, assuming everything will turn out to be just fine! Here are a few tips to help parents who are contemplating a talk with their children approaching puberty. Even if your adolescent kids are past that stage but never had a chance to discuss it with you, this is the time to explore their thoughts and give them a clearer understanding regarding the subject.


It all begins with your own need as a parent to recognize that education on puberty and relevant issues is significant for your child’s biological, emotional, social, and moral well-being. Admit and understand that in absence of correct and complete information your kids may feel frightened, moody, confused, or at a low esteem, due to the sudden changes in their bodies.


Make no distinction between girls and boys when imparting education on intimate matters. The most difficult challenge arises when boys in the house start asking questions like why their sister is not praying, fasting, or reading Quran with them. Generally, they are told lies, or excuses are made to hush up the subject. Hence, it is necessary to educate boys as well as girls, to avoid story telling which is prohibited in Islam anyways. Besides, boys are no different from girls in terms of changes and feelings that they experience with puberty, so why should they be treated differently?


The most effective time to provide your children with any information is before signs of puberty begin to arise. This may vary in kids from nine years onwards. You may talk in general about Allah’s creations and the fact that He created things in pairs. After opening up a line of communication, be available for their questions and observations in future.


Read and prepare yourself. This will enhance their trust in your knowledge and will put you in a comfortable slot too. Just as you have taught them school academics, good manners etc. this will be just another educational experience for your kids rather than a melodrama. Following is a checklist to help you prepare:

  • Anatomy (structure) and physiology (function) of the human body
  • Emotional, moral and physical aspects of puberty
  • The menstrual cycle
  • The sexual act and guidelines in Islam
  • The reproductive cycle
  • Conception, development of the fetus and birth
  • Islamic perspective on marriage and modesty


Take into consideration their level of understanding and maturity before answering their questions. However, do not push the subject too much nor dump heaps of information at once. Give them gradual bits of information as they begin to question. Also, avoid graphic descriptions that create anxiety and fear. Remember, that this is a learning opportunity for them and not a forum to create thrill and suspense.


Do not conceal information. They will eventually come to know through hand-me-down information tossed around by older siblings, friends, pornographic magazines, movies, or web sites. It is far better that they hear it from you.


You may explain gently to your kids that a subject like this is a private issue not to be discussed in public. Islam greatly advocates modesty and refuses to place anyone in an embarrassing position by making a talk show out of personal and intimate matters. Neither does it allow ridiculing anyone or embarrassing him or her. To be educated about puberty is one thing, but to create and spread perversion is absolutely forbidden.


Puberty is also a test from Allah to check which of His slaves are ready to observe the limits set by Him by safeguarding their chastity and satisfying their intimate desires within the legal capacity of marriage. Culturally, we expect chastity of girls; however, boys are granted leniency. Here, it needs to be reiterated, that boys are as much answerable and accountable for their actions as are girls.


The beauty of Allah’s blessings is such, that along every trial He has placed abundant mercy and satisfaction in everything granted to us. It is the case of puberty. Dr. Aisha Hamdan quotes: “Sexuality is a blessing given to us from Allah. It is obvious for the purpose of procreation, but is a mercy from Allah that there is also enjoyment and satisfaction that comes with it.” Teach your children to be thankful to Allah for it.


Sexuality and marriage go hand in hand in Islam. Maintaining illicit relations are prohibited. The Prophet Muhammad (sa) said: “He who can afford to marry should marry, because it will help him to lower his gaze (from looking at forbidden things and other women) and save his private parts (from committing illegal sexual acts) and he who cannot afford to marry is advised to observe fast, as fasting will diminish his sexual power.” (Bukhari)

Allah will question our kids standing at the threshold of adolescence for their choices and actions. As capable parents, we must empower them to learn to guard themselves against the many trials surrounding them today.

If the subject makes you highly uncomfortable, ask a trusted friend or a relative to be available to talk to your child, but do not stifle his right to learn and apply correctly. Educate them truthfully, keep a vigilant eye, pray to Allah, and place your trust in your kids to enable them to pass the tests with flying colours (Insha’Allah)!

When The Better Half Returns Home – Part 1

better half

After having a wretched day at home or outside, the first tempting thought that comes to a fatigued wife’s mind is to dump the despair on husband dear. If she can resist calling him at work, she impatiently waits for the day to end. Her eyes stay on the clock ticking ever slowly. There opens the door and she takes a deep breath ready for the kill. As soon as she sights her husband, she swiftly moves forward and pours the entire molten lava boiling within her on top of her spouse!

The husband already looks battered after toiling through the day. If he is the silent crusader, he will listen to his wife with occasional nods not daring to stop her tirade. He will silently pray to God for her tape to run out soon so he can rest his ears and relax his mind. If conversely he is the confrontational type, he will give her a piece of his mind to shut her mouth. That will be the end of all conversations for the day. The wife will end up with a swollen face and hurt feelings. The husband will end up with a quiet and peaceful evening to himself.

One cannot help but wonder how those women on television look so pretty when their husband comes home. The house is spick and span, the children are neat and tidy, even the pet looks ecstatic and well-kept. Don’t they have worries like unaccommodating in-laws, uncontrollable children, unmanageable servants, unending house chores, unannounced guests or uncountable bills to settle? Probably not on their planet but on earth, life is certainly not trouble free. So, is there a better way to handle these small matters amicably?

Following are some tips to help you revisit your daily schedule and relieve unnecessary stress from building up. It will certainly not do your work for you but facilitate a different approach to go easy on yourself.

Tips For Lady Of The House

  • Wrap up all your house chores at least an hour prior to your husband’s usual arrival time. Remember, even if you were granted 48 hours instead of 24 in a day, there will still be something left out screaming for your attention. A simple make over can work wonders and lifts up your mood. Besides, husbands also hate to come home to a worn out wife who gives them sore eyes. Even if they don’t comment they will certainly notice the effort and feel pleased with you. Besides that you will even earn a bonus reward from Allah for dressing up for your husband, Insha’Allah!
  • Goethe wisely pointed out that ‘He is happiest, be he king or peasant who finds peace in his home.’ When your husband arrives, greet him with genuine enthusiasm. Thank Allah for your family’s safety and good health. It may be tempting to throw your heartfelt miseries point blank at your husband but hold on to them patiently. The point is, sharing your troubles now would not earn you any benefit. Firstly, he may be tired and not in the best frame of mind to offer you sympathy or solutions. Secondly, all your efforts may never be appreciated and the cause may be defeated. Present your case at the best time so it earns the attention it deserves. As Benjamin Franklin put it, ‘He that can have patience can have what he wishes.’
  • Frances Brooke observed that worries are like a horse. They keep you going but don’t get you anywhere. Put your worries on the back burner and your mind in the present time. You may allow your husband some time and space with the kids or his parents if they happen to live with you, since both are hardest to convince to wait around. Meanwhile prepare him a snack or tea if he wishes so. You can get on with preparing the dinner or take care of remaining house chores. Or you may simply join them in their fun and play or discussion.
  • Some times there are genuine urgencies that cannot wait. This may include a doctor’s habitual appointment, something the kids want for school on a short notice, grocery shopping, visiting a sick relative or some other important social commitments that do not fit into your family schedule. As long as it does not become a routine, you may request your husband to help you take care of it, even if it means sacrificing his peace and comfort at home. Once in a while he should not mind it.
  • As per routine, ask your husband how his day had been. Work these days has become a market place of stress. Many times men bring it home bottled up inside of them. As humans have an instinctual need to be heard, just listening about their challenging tasks and reassuring them towards the positive lightens their burden.
  • Once you have allowed him his breathing space, gently open your can of worms. Here what needs to be checked is your tone and choice of words. The trick to be able to persuade any man is with love and tenderness. The minute a wife tries to wear the pants in a relationship, it’s like you have stepped on a cat’s tail. Men hate it when their egos are bruised. Michelet rightly states that, ‘Women are perfectly well aware that the more they seem to obey the more they rule.’ Handle your spouse like a fragile glass. Once you have won him over, not only he will be able to see your point of view but support it too.
  • Lastly and most importantly, each night before you call it a day focus on the positive aspects of your life in comparison to others around. There are always countless examples among us who make us realize how lucky we are to have what we have got. The key word to peace and contentment is appreciation. Learn to appreciate virtues of your better half and remember them for Allah has mercifully given great set of qualities to all of us in spite of our shortcomings. Make no mistake that happiness is hardly a set of circumstances. It is more of a state of mind. If you postpone being happy on the basis of ideal circumstances, you will never find it guaranteed. So start living now. You will enjoy the present for it is the best gift you can have!