Musharakah

Musharakah Financing

Musharakah Financing is an Islamic financing method where two or more parties contribute capital to a business or project and share the profit and loss according to an agreed ratio. All partners have the right to participate in management, or they may agree to appoint one party to manage. Losses are shared based on the amount of capital contributed, while profits are shared as per agreement. In short, Musharakah is a partnership-based, Shariah-compliant financing that promotes risk-sharing and fairness.