UAE Civil Transactions Law

Article 664

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

1. It is not permissible in the Mudaraba contract to stipulate a fixed amount of profit for one of the contracting parties. 2. It is permissible to agree that the profit shall be shared between the contracting parties and that any amount exceeding a certain limit shall be allocated exclusively to one of them, or to agree that the share of each of them in the profit shall vary according to the profit realized by the Mudaraba, based on valid criteria for its determination. 3. It is permissible to agree that one of the contracting parties shall be entitled to a specific remuneration in return for a specific service, in addition to their entitlement to their share of the profit.

WAWhatsAppTGTelegram