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.
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
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.
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.
✔ 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
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.
(A downloadable PDF can be provided.)
Investor (Rab-ul-Maal): WAQFPartners
Manager / Operators (Mudarib): Project Manager and Fish Farmer
Fish Farming (Tilapia or Catfish)
₦[Amount] covering feed, juveniles, pond/cage operations, and essential running costs.
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.
Investor (Rab-ul-Maal): 40%
Project Manager: 10%
Fish Farmer: 50%
(To be agreed and documented before each production cycle.)
Financial losses: Investor
Negligence / fraud / mismanagement: Project Manager and/or Fish Farmer
One production cycle (typically 6 months). Renewable upon review.
The Project Manager collects and maintains:
Feed logs
Water quality checks
Sampling records
Cost reports
Mortality logs
Sales records
Allowed for breach, misconduct, or mutual agreement.
Islamic commercial jurisprudence and Nigerian civil law where applicable.