Contents

• Introduction
• What is Financial Intermediation in Capitalist Economies
• What is Islamic Framework
• Introduction of Islamic Banking
• Islamic Banks as Financial Intermediaries
• Observing Shariah Principles
• Shariah Concepts in Islamic Banking
• Mudarabah as per Quran and Sunnah
• Mudarabah in the light of Islamic History
• What is Mudarabah?
• Two Tier Mudarabah
• Parties to Investment
• Capital of Mudarabah
• Types of Mudarabah
• Difference Between Mudarabah and Musharakah
• Distribution of Profit
• Mudarabah Expenses
• How Mudarabh Relationship can be terminated
• Different Capacities of Mudarib
• Combination of Mudarabah and Musharakah
• Musharakah and Modarabah as Modes of Financing
• Modes of Financing:
• Uses of Mudarabah
• Conclusion
• References

Description

In order to analyze Shariah rules in Islamic Transactions, I have been given a choice to select a topic from three options and write five thousand words on that topic. In order to complete my assignment, I have selected topic three “Mudarbah as a form of financial intermediation within Islamic framework”.
Before I start to analyze what is mudarabah and how it works, It is essential to get a background of the basic concepts involved in this topic, including financial intermediation, Islamic banking to have a clear understanding of the topic.
At the start I would like to define, what is meant by financial intermediation.