Issues and challenges in offering mudārabah and mushārakah products in Islamic finance

The study aims to explore the views of scholars,bankers and entrepreneurs in promoting mudārabah and mushārakah based contracts and to analyse their views to strengthening those practises. the study utilized qualitative research approach which consists of document analysis,interviews and observations in few phases. the study found few industrial concerns such as the needs on checks and balances in mudārabah and mushārakah to avoid failure; the lacking of some good qualities and hence certain conditions must be imposed on entrepreneurs if they want to conduct business based on mushārakah or mudārabah contracts. in addition,although all respondents agreed that the damān concept is actually contrary to the concept of mudārabah (muqtadā al-'aqd),they still stress the need for a mechanism to make entrepreneurs serious in conducting the business. however,the disappointing conclusion derived from the interviews is that the industry is quite reluctant to enhance their participation in mudārabah- and mushārakahbased products.