Our Shariah-Compliant Agricultural Investment Models

In Mudarabah you provide capital and GrowVest manages the project. The real profit is shared at a fixed ratio, so your return depends on actual results. In Murabaha your money buys real goods that are resold at a profit margin disclosed upfront, so your return amount is fixed from day one.

For Murabaha projects the margin is fixed in the contract. For Mudarabah projects the figure is a projection based on past cycles. Guaranteeing profit in Mudarabah is not permitted in Shariah, so the actual result can be higher or lower.

A normal business loss is borne by the capital in proportion to each investment, while GrowVest loses its effort and management fee. If a loss is caused by GrowVest negligence, misconduct or breach of terms, GrowVest bears it in full.

Under the Murabaha Agreement, the investor does not share in business losses. Therefore, the risk factor and service charge are not deducted from the investor's agreed share. The investor receives the invested capital along with the agreed halal profit under the GrowVest project, in accordance with the terms of the agreement.

However, under the Mudaraba Agreement, profits are distributed according to the agreed profit-sharing ratio, while financial losses are borne by the investor unless they result from the Mudarib's negligence, misconduct, or breach of contract.