‘mudaraba’ means a sharia arrangement between a bank and a client of that bank whereby-

 

(a)     funds are deposited with the bank by the client;

 

(b)     the anticipated return in respect of the sharia arrangement is dependent on the amount deposited by the client in combination with the duration of the period for which the funds are deposited;

 

(c)     the bank invests the funds deposited by the client in other sharia arrangements;

 

(d)     the client bears the risk of the loss in respect of the sharia arrangements contemplated in paragraph (c); and

 

(e)     the return in respect of the sharia arrangements contemplated in paragraph (c) is divided between the client and the bank as agreed at the time that the client deposits the funds with the bank;