Welcome to WAQFPartners

Mudaraba is an Islamic financing partnership where one party provides the capital (Rab-ul-Maal) and the other provides skills, management, and labour (Mudarib). Profits are shared according to a pre-agreed ratio, while financial losses are borne by the investor — unless caused by negligence, misconduct, or fraud.

This structure promotes transparency, ethical investment, and real economic activity, making it ideal for agriculture, aquaculture, and community development projects.

1. How the Mudaraba Model Works

Roles in the Partnership

Rab-ul-Maal (Investor / Waqf / Donors)

• Provides 100% of the capital required for each project cycle.

• Shares 40% of the net profit.

• Bears all financial losses unless caused by negligence, fraud, or misconduct.

Mudarib (Project Manager & Fish Farmer)

The Mudarib function is jointly fulfilled by:

Project Manager (10% share):

• Supervises 5-10 Fish Farmers

• Conducts monitoring, reporting, oversight, and ensures compliance

• Provides technical guidance and ensures performance

Fish Farmer (50% share):

• Provides daily labour and operational skill

• Manages feeding, maintenance, sampling, and fish health

• Maintains records and cooperates with monitoring

Profit Sharing

Profits are distributed according to the following model:

• Investor: 40%

• Project Manager: 10%

• Fish Farmer: 50%

This structure ensures:

• Strong incentive for Fish Farmers

• Scalable incentives for Project Managers

• Fair yet sustainable returns for Investors

The exact ratio is determined before each cycle.

Loss Sharing

• Financial losses: Borne entirely by the Investor (Rab-ul-Maal).

• Losses due to negligence, fraud, or misconduct: Borne by the Project Manager and/or Fish Farmer.

This ensures fairness, accountability, and full Shariah compliance.

2. Why We Use Mudaraba

✔ 100% interest-free (Riba-free)
✔ Clear roles for Investor, Manager, and Operator
✔ Rewards real economic activity and skill
✔ Transparent risk-sharing structure
✔ Suitable for repeatable 6-month fish farming cycles
✔ Builds capacity and income within local communities

3. How We Apply Mudaraba in Fish Farming

Our Tilapia (Case Study A) and Catfish (Case Study B) projects both use the Mudaraba model:

• The Investor provides the capital for juveniles, feed, and operational costs.

• The Project Manager supervises, trains Fish Farmers, checks performance, and reports progress.

• The Fish Farmer manages daily operations — feeding, sampling, cleaning, monitoring fish health.

• All profits are shared ethically based on the agreed ratios.

• Each cycle is measurable, trackable, and transparent.

This structure ensures each project is both Shariah-compliant and operationally effective.

4. Sample Mudaraba Agreement (Simple Template)

(A downloadable PDF can be provided.)

Parties

• Investor (Rab-ul-Maal): WAQFPartners

• Manager / Operators (Mudarib): Project Manager and Fish Farmer

Project

• Fish Farming (Tilapia or Catfish)

Capital Provided

₦[Amount] covering feed, juveniles, pond/cage operations, and essential running costs.

Responsibilities

Investor:

• Provide capital and oversight through WAQFPartners.

Project Manager:

• Monitor performance, conduct field visits, ensure compliance, review records, and support farm operations.

Fish Farmer:

• Operate the farm responsibly, maintain accurate logs, follow feeding plans, and ensure fish health.

Profit Sharing:

• Investor (Rab-ul-Maal): 40%

• Project Manager: 10%

• Fish Farmer: 50%
  (To be agreed and documented before each production cycle.)

Losses

• Financial losses: Investor

• Negligence / fraud / mismanagement: Project Manager and/or Fish Farmer

Duration

One production cycle (typically 6 months). Renewable upon review.

Record-Keeping

The Project Manager collects and maintains:

• Feed logs

• Water quality checks

• Sampling records

• Cost reports

• Mortality logs

• Sales records

Termination

Allowed for breach, misconduct, or mutual agreement.

Governing Law

Islamic commercial jurisprudence and Nigerian civil law where applicable.