rabb al-mal
Rabb al-mal refers to the owner of capital or wealth in Islamic finance. This term is often used in the context of partnerships, where the rabb al-mal provides the financial resources while the other partner, known as the mudarib, manages the investment. The profits generated from the investment are typically shared according to a pre-agreed ratio.
In Islamic finance, the role of the rabb al-mal is crucial as it helps facilitate investments without engaging in interest-based transactions, which are prohibited in Islam. This structure promotes risk-sharing and ethical investment practices, aligning with the principles of Shariah law.