Sorry, you need to enable JavaScript to visit this website.

Weather in
  • Temperature: 16.3°C
Mon 11 Dec 2017 23 Rabia al-Awwal 1439H

Musharaka

It is of two types:

  • Permanent Musharaka: Bank and client share profits on a pre-agreed ratio according to a portion of each.
  • Diminishing Musharaka Ending in Ownership:

The bank is the financing party – partially or fully – in a project which has an expected return. It must be agreed that the bank obtains a relative ratio from the realized net income; meanwhile the bank keeps the remaining part (the partner’s share of the net realized profit) or part of it to settle the principal offered by the bank in the financing. After that, the project is wholly financed and owned by the other party.