UAE Civil Transactions Law

Article 662

Book Two: Nominate Contracts · Section One: Contracts of Transfer of Ownership · Chapter Six: Mudaraba Contract · Part Two: Effects of the Mudaraba Contract

1. The capital provider alone shall bear any loss of capital, and any condition to the contrary shall be void. 2. If the capital is diminished in the hands of the mudarib without any transgression or negligence on their part, they shall not be liable to compensate the capital provider for the loss. 3. If the mudarib commits any transgression or negligence, they shall be liable to compensate the capital provider for the loss of capital and for any damage resulting therefrom.

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