Definition of Musharakah


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. BNM/RH/STD 029-4 Islamic Banking and Takaful Department Investment account Page 5/60 Issued on: 14 March 2014

Examples of Musharakah in a sentence

Bank Negara Malaysia: Concept Paper - Shariah Requirements, Optional Practices and Operational Requirements of Musharakah.
The profits and losses that flow from the Musharakah are again shared among the parties on a pre-agreed ratio.
Bank Negara Malaysia, "Guidelines on Musharakah and Mudharabah Contracts for Islamic Banking Institution", June 2010.
Musharakah in particular requires more commitments and effort from the Bank in the aspect of monitoring and supervision as the Bank assumes business as well as credit risks.
Generally, Musharakah is most suited for financing private or public companies and project financing.