[Reliance 360] Understanding Murābaḥa, Muḍārabah, and Mushārakah in Islamic Finance: Insights from Shaykh Yasir Qadhi

At Reliance 360 Ltd, we are dedicated to the continuous study and advancement of Islamic Finance. In this enlightening video, renowned scholar Shaykh Yasir Qadhi provides an in-depth explanation of key concepts in Islamic finance, specifically Murābaḥa, Muḍārabah, and Mushārakah. The video, titled “What is Murābaḥa, Muḍārabah, & Mushārakah? (Islamic Finance) | Ask Shaykh YQ,” can be accessed on Shaykh Yasir Qadhi’s YouTube channel at this link.

Unveiling the Principles of Islamic Finance

Islamic finance operates on principles derived from Islamic law (Shariah), which emphasize fairness, ethics, and avoiding interest (riba). To gain a deeper understanding of this field, it is essential to grasp the concepts of Murābaḥa, Muḍārabah, and Mushārakah.

Murābaḥa: Transactional Buying and Selling

Shaykh Yasir Qadhi sheds light on Murābaḥa, an essential concept in Islamic finance. Murābaḥa refers to a transaction in which the seller discloses the cost of goods and adds an agreed-upon profit margin. It allows for trade and commerce while adhering to Islamic principles.

Muḍārabah: Profit-Sharing Partnership

Another key concept discussed in the video is Muḍārabah, which refers to a partnership agreement between a capital provider (Rabbul-Maal) and an entrepreneur or manager (Muḍārib). The profits generated from the business venture are shared based on an agreed-upon ratio, while the capital provider bears the financial risk.

Mushārakah: Joint Venture and Equity Participation

Shaykh Yasir Qadhi also explores Mushārakah, a form of partnership that involves joint venture and equity participation. It allows multiple parties to pool their resources and share the profits and risks proportionally. Mushārakah promotes collaboration and fosters a sense of shared responsibility among partners.

What is Murābaḥa, Muḍārabah, & Mushārakah? (Islamic Finance) | Ask Shaykh YQ

To gain a comprehensive understanding of Murābaḥa, Muḍārabah, and Mushārakah in Islamic finance, we encourage you to watch the full video on Shaykh Yasir Qadhi’s YouTube channel. Click here to access the video directly.


Shaykh Yasir Qadhi’s insightful video provides a valuable educational resource on the principles of Murābaḥa, Muḍārabah, and Mushārakah in Islamic finance. By embedding this video into our article, we aim to enhance understanding and awareness of these concepts among our readers. Stay informed, broaden your knowledge, and explore the world of Islamic finance with Reliance 360 Ltd.

Note: The content and opinions expressed in the video belong solely to Shaykh Yasir Qadhi.