Alqanoni

Civil Transactions Law

Art. 559
Status unknownSaudi ArabiaRegulation

Issued by Ministry of Investment (misa.gov.sa)

1. A mudaraba contract may not stipulate a fixed amount of profit for either contracting party. 2. The contracting parties may agree that a certain amount of the profit be equally divided between them and that one of the parties is entitled to any profit in excess of such amount, or they may agree on a variable profit share based on the amount of profit realized from the mudaraba in accordance with valid determination criteria. 3. The contracting parties may agree that either party be paid a specified fee for the performance of a particular task, in addition to his share in the profit.

The Arabic text is the legally binding version. The English translation is provided for guidance only.

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