Musharakah definition

Musharakah means a relationship established under a contract by the mutual consent of the parties for sharing of profits and losses arising from a joint enterprise or venture. All providers of capital are entitled to participate in management, but not necessarily required to do so. The profit is distributed among the partners in pre-agreed ratios, while the loss is borne by each partner strictly in proportion to respective capital contributions.

Split View

AI-Powered Contracts

Draft, Review & Redline at the Speed of AI

Get StartedSchedule a Demo

Musharakah. , means a partnership between two or more parties which may take effect through contractual relationship (‘aqd) or by operation of Islamic law, whereby all contracting parties will share the profit and bear loss from partnership.

Musharakah means a partnership between 2 or more parties, whereby all parties will share the profit and bear the loss from the partnership.

Examples of Musharakah in a sentence

• The Project is located as specified in Section 2 of the Appendix and the currency used in the calculation of the capital contribution of the Musharakah, the Profit Sharing Ratio and any projected return on investment thereof will be in the Indonesian Rupiah (IDR), the local currency where the Project is located.

• The Company shall exercise due diligence to the best of its expertise, knowledge and skills to ensure that all the transactions in the Musharakah are Shariah-compliant.

• In accordance with the Shariah principle of Musharakah, all actual financial losses incurred or accrued by the Project shall be borne jointly by the Investor Group and the Issuer in proportionate to their Capital Contribution Ratio.

• The Company charges service fees for facilitating the Musharakah agreement between the Investor and the Issuer, as described in Section 5 of the Appendix.

• A Shariah-compliant agency agreement through which an agent is appointed by a principal to carry specific tasks with or without fees; Under the Shariah principle of Wakalah, the Investor hereby irrevocably and unconditionally appoints the Company as its agent and the Company hereby accepts this appointment to represent the Investor in a Musharakah agreement with the Issuer in the Project via this Agreement, for the purpose of investing in the Project.

More Definitions of Musharakah

Musharakah means a relationship established under a contract by the mutual consent of the parties for sharing of profits and losses arising from a joint enterprise or venture. All providers of capital are

Musharakah means a relationship established under a contract by the mutual consent of the parties for sharing of profits and losses arising from a joint enterprise or venture. All providers of capital are entitled to participate in management, but not necessarily required to do so. The profit

Musharakah literally means sharing, and in the context of finance, trade and business, it means a joint enterprise, or joint commercial enterprise, in which all parties contribute investment capital, labour, management and expertise as well as share the profit and loss of the venture (Usmani, 2021; Samad, et al. 2005; Iqbal and Molyneux 2005). The term ‘Musharakah’ is often used in the context of Islamic finance, conversely, the term ‘shirkah’ is used normally in Islamic jurisprudence (fiqh). The terms of Musharakah, sharing and shirkah are all interchangeable (Nik Abdul Ghani, 2021 and Hamzah, at el., 2013) and all constitute partnership concept. However, Musharakah is typically appropriate for investments in business ventures and business projects (Hamzah, at el., 2013; Jaffar, 2010). Additionally, it is one of the ideal and real instrument of financing in the context of Islamic finance (Usmani, 2021; Farooq & Ahmed, 2013).

Musharakah. Means the arrangement between the Modaraba and the Customer where by the Modaraba makes payment in the acquisition of the Musharakah Asset(s) jointly for the purpose of allowing the Asset(s) to be used by the Customer in terms of this Agreement.

Musharakah the Shariah contract of joint ownership in the Property between the Chargee and the Chargor pursuant to Musharakah Property-i Facility Agreement as defined hereinafter.

Musharakah means a relationship established under a contract by the mutual consent of the parties for sharing of profits and losses arising from a joint enterprise or venture. All providers of capital are entitled to participate in management, but not necessarily required to do so. The profit is distributed among the partners in pre - agreed ratios, while the loss is borne by each partner strictly in proportion to respective capital contributions.

Musharakah means the Musharakah resulting from the purchase by the Investment Agent of the undivided share in the Assets and comprising of the Co-owners joint ownership of the Musharakah Assets;