Mudharabah is a profit-sharing partnership agreement of a business venture to carry out economic activities. Despite its potential socioeconomic benefits to the parties involved and to the society, the application of mudharabah is limited to engineered Islamic finance products which transform the conventional financial products into Shari'ah-compliant ones. We argue that, in order to realise the mudharabah true potentials, among others, the mudharabah contract needs to be revived. The purpose of this study is to propose a framework in reviving the mudharabah contract between the sahibul mal (capital provider/investor) and the mudharib (entrepreneur). The research methods used in this study are library research and content analysis. As a result, agency theory is recognised to be very relevant to the mudharabah contract. To revive the mudharabah contract, tahaluf concept (Islamic treaty with compliance with Shari'ah) is identified as the most suitable concept to be adopted. This proposed framework serves as guidance in formulating the data collection strategy from different perspectives i.e. from sahibul mal, mudharib, Shari'ah advisors and academicians.
During Tun Dr. Mahathir Mohamad served as a Prime Minister of Malaysia, some efforts are shown when he trying to evaluate the current economic system which is based on the conventional economic system and trying to change to the Islamic economic system. This is caused by the evolution from the westernized thought to the Islamic thinking that occurred by a paradigm shift of people who was more interested in switching to the Islamic economic system. However, it's weird because this thought is differ from Tun Dr. Mahathir Mohamad's leadership who is deemed to be more westernized than Islamic ways. In the meantime, Tun Dr. Mahathir Mohamad also had implemented the Dasar Penerapan Nilai-nilai Islam policies and he had declared Malaysia as an Islamic state. The problem is, the economic development is mixed between the conventional economic development and the Islamic economic development. It is being an issue because when the people are taught to use the Islamic economic system? Is that the outcome from the implementation of the Dasar Penerapan Nilai-nilai Islam by Tun Dr. Mahathir Mohamad's leadership? What are the Islamic economic criteria has been used by Tun Dr. Mahathir Mohamad to attract the people? In order to answer the above questions, this paper was written to answer these questions by examining and analyzing the implications of the Tun Dr. Mahathir Mohamad's leadership in the Islamic economic development in Malaysia. The methodology has been used for this paper are using the literature review method and content analysis method. The results shows during Tun Dr. Mahathir Mohamad served as Prime Minister of Malaysia, he has been attempting to develop the Islamic economic system in Malaysia. Tun Dr. Mahathir Mohamad also approached the Saudi Arabia to get the information and an experience from their implementation economic system based on shari'ah. Interestingly, although the implementation of the Islamic economic system is already started in Malaysia, the positions of non-Muslims in the country are not affected at all
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