Understanding Classical Mudarabah

Understanding Classical Mudarabah

Author: Mohd Hilmi Ramli
Publisher: Penerbit UTM
Format: Paperback
ISBN: 9789835222115
Pages: 184 p
Weight: 307 g
Year: 2026
Price: RM60

Mudarabah is a contract of profit-sharing known as partnership in capital and labor. Its concept and practices were notable in the history of Muslims specifically after its incorporation in the figh literatures that have spread to the entire education and economic institutions in the Muslims world. It combines two parties; those who have capital and those who are skilful in business to achieve a common economic objective underpinned by the Sharah. This study analyzes the work of al-Mabsüt by al-Sarakhsī (d. 483 A.H./1090 A.C.), an accomplished Hanafi jurist (faqih) in fifth/eleventh century, pertaining to mudārabah drawn from the translation and analysis of the first chapter of the book entitled Kitab al-Mudārabah. This study is significant as it fills the lacuna in the historiography of Islamic economic thought by focusing on al-Sarakhsi's definition of mudarabah, the concept of currency as a form of capital (ra's al-mal), the spirit of cooperation and mutual respect in mudārabah, the role of individual and the investment and distribution of profit. It is a testimony of how the Muslims conducted their economic activities based on the intellectual framework and moral guidance underlined by the Shariah. This book has discovered that mudārabah was integral in individual and societal dynamics and Islām does provide a coherent vision and concept of economics in contrast to modern economics.