The profit in the Mudaraba contract

This work discusses the nature, the application and the profit of mudaraba which is the base of fund-raise process of participation banks. In the work mudaraba and its profit are discussed in three phases which are as well conceived as main chapters of the work. In the first chapter, it is emphasized that classical mudaraba is a contract different from partnership and a comparison is made between classical mudaraba and mudaraba which is being applied in interest free banking. Subsequently, profit and related terms are dealt with, and profit making means of fıqh are compared with profit making theory of modern economics. The second chapter of work is dedicated to fulfilling, passing into possession and distribution of classical mudaraba profit. In this capter, the nature of rights of the parties on profit, while it is in process, is determined and the issues about profit of mudaraba and its distribution are discussed in detail. In chapter three, nature of mudaraba that is applied in interest free banking systems, its process and relevant controversial points, and fulfilling of profit of participation account, its calculation and its distribution are discussed. Accordingly, reserves that are spared from participation account, provisions, expenses, bank charges, profit of capital which is withdrawed early, dividends taken daily by bank from the pool are discussed in respect to their compliance with fıqh.