Mudarabah partnership in Islamic law and its place in participation banking

The institution of partnership significantly contributes to investments and the division of labor created by partnerships enables individuals to do things on a much larger scale than they could do on their own. In this context, this study, which deals with mudarabah partnership, one of the partnership types in Islamic law, deals with mudarabah based on the classical sources of Islamic law, on the other hand, mudarabah partnerships are examined in contemporary fatwa literature and various methods of mudarabah practices in participation banking today are discussed. This study, which aims to reveal the place of mudarabah partnership in Islamic law, also differs from other studies in that it aims to examine the mudarabah partnership in the Islamic economy from the past to the present, together with its practices in today's participation banking. A literature review was conducted in the theoretical part of the study; in the field research, semi-structured interviews, direct observation, and document analysis techniques were utilized from qualitative research methods. As a result of the interviews, it was concluded that the mudarabah instrument is used very little in participation banks, but this use can be increased with the relevant regulations. In light of the data obtained, suggestions for increasing mudarabah financing are presented. It will be possible to popularize mudarabah among society as a result of informing the legislative institutions, participation banks where mudarabah is applied and the society about mudarabah. Increasing the mudarabah instrument will contribute to the development of Islamic finance in today's world.