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It is a contract between two people. One who has money and wants to invest it somewhere, while the other one wants to work but has no money to start a business. Hence both people enter in to a contract after deciding the profit/loss ratio and other terms. An important point of this tool is that the investor (Rabbul maal) is basically a sleeping partner and does not work, while the other person (Mudarib) manages every aspect of the operation. Hence, the financing needs of the Rabbul Maal and Mudarib are fulfilled and it also results in robust economic activity which benefits other people as well.