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Converting Mudarabah Into Musharakah
Is it permissible for the parties to a Mudarabah contract to convert it into a Musharakah, and subsequently attract more capital through the issue of Shariah-compliant financings?
It is permissible to convert a Mudarabah into a Musharakah and to raise capital through financings. It should be noted, however, that before entering into a contract, all parties should agree on definite objectives of their Mudarabah partnership in order to avoid any future ambiguities.

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