Ratio of profit-sharing between the
owner of the capital and the entrepreneur, who uses these funds
on the basis of mudarabah. It is an alternative for or parallel
to the rate of interest in the capitalist economy where funds
are advanced by one party to the other as a 10:1n. Manipulation
in the rate of mudarabah can be made to adjust the supply of and
demand for investible funds in the Islamic economy.
