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

Examples of Musharakah in a sentence

  • If a partner has put an express condition in the agreement that he will not work for the Musharakah and will remain a sleeping partner throughout the term of Musharakah, then his share of profit cannot be more than the ratio of his investment.

  • These risk profiles include the past record of the management team and quality of the business plan of, and human resources involved in, the proposed Mudarabah or Musharakah activity.

  • By nature, this type of equity investment is exposed to a confluence of risks associated with Mudarib or Musharakah partner, business activity and operations.

  • Regardless of the authority under which the profit sharing instruments are used, both Musharakah and Mudarabah are profit-sharing financings, under which the capital invested by the provider of finance does not constitute a fixed return, but is explicitly exposed to impairment in the event of losses (capital impairment risk).

  • 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.


More Definitions of Musharakah

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;
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 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 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 means ‘sharing’
Musharakah means the arrangement between the Bank and the Customer pursuant to which the Bank will purchase from the Customer an undivided beneficial ownership interest in the Musharakah Asset (s) pursuant to a Purchase Agreement for the purpose of creating a “Shirkat ul Milk” (beneficial ownership as proprietors in common in specified shares) in the Musharakah Assets as provided for under and on the terms contained in this Agreement and each Purchase Agreement and with the Customer having the right to exclusively use enjoy and exploit the Musharakah Assets in accordance with the Lease Agreement;
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