December 28

Mudarabah: The first Mudaarib and Rab al Maal

Ancient Trade Caravan in Arabia“Its a matter of history about Mudarabah1. I am sure that you know that who is the first and the best Mudaarib2 in the Islamic history? The first and the best Mudaarib in the Islamic history was Prophet Muhammad (صل الله عليه و سلم). And who was the Rabb-al-Maal3? It was Syeda Khadijah4 (رضي الله عنها). So the first business woman in the Islamic history was Khadijah (رضي الله عنها). That was 1400 years ago, long before women in the west or US were allowed to own & check accounts, have the right to write cheques and manage their own resources. Only in the last 100 years they started to have these rights in the west5. But in the Islamic history, women have this right since centuries and centuries ago.”

Extracted from the closing lecture on Islamic Finance by Dr. Sami-as-Suwailem for Islamic Finance (Fiqh-ul-Muamalat) 606 offered at Knowledge International University, Riyadh, KSA.

1) Mudarabah: The term refers to a form of business contract in which one party brings capital and the other personal effort.
2) Mudaarib: The party that utilizes the capital for business is known as Mudaarib
3) Rabb-al-Maal: The financier is known as Rabb-al-Maal
4) The first wife of Prophet Muhammad (صل الله عليه و سلم). She initially hired him to manage her trade trips outside Mecca and then proposed marriage to him after being impressed by his business ethics and high moral standards.
5) Refer to ‘Timeline of women’s rights (other than voting)‘ 19th century onwards.
Main Image Courtesy: Khadijah – The Prophet’s beloved, the Princess of Quraysh

Posted December 28, 2015 by Muhammad Iqbal in category Islamic History
Muhammad Iqbal

About the Author

The author is pursuing his bachelors in islamic studies from Knowledge International University, KSA. He also holds a bachelors in IT & is a CCTV consultant by profession.

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