mudarib
A mudarib is an individual or entity that manages an investment fund in Islamic finance. This role involves using their expertise to invest capital provided by another party, known as the rab al-mal. The mudarib is responsible for making investment decisions and managing the assets, while the profits generated are shared according to a pre-agreed ratio.
In a mudarabah contract, the mudarib does not contribute capital but is compensated through a share of the profits. This arrangement aligns with Islamic principles, as it promotes risk-sharing and prohibits interest-based transactions, ensuring that both parties benefit from the investment's success.