THE MUDAREBE AS A LEGİTİMATE İNVESTMENT İNSTRUMENT AND İTS USE TODAY

Abstract

Mudarebe is a type of partnership that was adopted before Islam and endorsed by Islamic religion. This partnership is an agreement that one party puts forth its capital and the other side puts forth its work and runs this capital. The real purpose of the mudarbe, that the owner of the capital called rabbu’l-mal and the employee of the capital called mudarib or amil is to profit and to share the profit among them. Profit sharing ratios can be at various rates that the parties agree on during the contract. But any party can not be completely deprived of profit. There are some requirements for capital, mudarib and profit in order for the Mudarebe contract to be acceptable in Islamic jurisprudence. If any of these conditions are not fulfilled, it will make the mudaraba contract iinvalid. In addition to the function he has seen in the past, Mudaraba is now regarded as one of the basic foundations on which Islamic banking is built. Mudarebe is implemented in Islamic finance institutions as an alternative to banking based on interest. However, the mudaree method in Islamic banks is not as prevalent due to some of the risks it contains and some obstacles in banking regulations. Instead, murabaha and müşareke methods are more popular in Islamic banks. In order for the implementation of Mudaraba to reach the desired level, it is necessary to put into practice the legal regulations that provide assurance to both sides and reduce the tax burden for Islamic banks, and create a wider area for financial investments and train competent and qualified personnel for mudarebe operations.