Introduction One of the popular forms of investments in the region is Mudarabah or Profit-Sharing Contract wherein a capital owner provides capital to an entrepreneur and the profit generated is shared between the parties.  Many people prefer this arrangement primarily for two reasons, namely; (1) it enables them to participate in trade and business activities through people who have the knowledge and expertise; (2) the profit generated or income earned on capital invested is not treated or considered as interest. Mudarabah Principles The Law restates the principles and rules for Mudarabah contracts that are quite in line with the concept, norms and principles under Shariah.   Besides the capital provided in cash form to the partner managing the project or enterprise