Mudarabah is a financial partnership in Islamic finance where one party provides capital while the other offers expertise and management. The capital provider, known as the rabb-ul-mal, invests money in a business venture, while the manager, or mudarib, runs the operation. Profits generated from the venture are shared according to a pre-agreed ratio, but losses are borne solely by the capital provider. This arrangement encourages entrepreneurship and risk-sharing, aligning the interests of both parties. Mudarabah is commonly used in various financial products, including investment accounts and project financing, promoting ethical investment practices in accordance with Shariah law.