Civil Transactions Law
Art. 559Status 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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