Why is the capital provider not allowed to work with an entrepreneur in Mudarabah?

In-Depth Analysis

The author constructs a scenario to illustrate the non-interference principle: Assume that you are the Mudarib and have received the capital from a Rab Al Maal which you have deployed in the activity of procuring building material from wholesalers and supplying to contractors. You were appointed as the Mudarib by the investor owing to your over-a-decade's involvement in this line as the sales and marketing manager of a large group where you learned the ropes of the building material market. The Mudarabah agreement signed by you with the investor is for one year with a clause that you will submit the financial statement to him upon the completion of six months. You are operating from a small office since you wanted to keep the cost at a minimum in order to impress the investor so that he takes you as the Mudarib on a perpetual basis. You get a call from the investor asking if you are available in the office as he was passing by and wanted to have coffee with you. He drops in, sees a purchase order lying at your desk for a supplier, and immediately starts interfering — refusing to supply to a specific contractor on credit because of a personal dispute with the contractor's uncle. There are two impairments that the investor is causing by his action: first, ruining your plans to produce a result and getting a benefit out of sharing the profit which should have been more than the fixed salary you used to get; and second, harming his own interest by putting obstacles in your way to perform as the Mudarib. The protection to the Mudarabah capital emanates from within the Mudarabah structure itself, and hence the capital provider should be relaxed and let the Mudarib shed his sweat to eke out his own living by producing the profit which shall guarantee that the capital is intact. In Shariah, the capital provider is not given the right to work with the Mudarib, or to get involved in acts relating to the Mudarabah operation because such a provision would curtail the freedom of the Mudarib, limit the investment scope, and hinder the Mudarib in achieving the objectives of the Mudarabah contract. Also, the Rab Al Maal enters into a Mudarabah contract since he or she lacks the business acumen and expertise, and by interference, it may jeopardize the very purpose of signing the Mudarabah contract with an entrepreneur.