Chapter 11: MMusharakah
An exploration of the Musharakah concept, what it entails, its applications and surrounding issues
Welcome to a new discussion in this educative series on Islamic finance. From today, we shall deliberate on the subject of…
I shall pick up the thread from where I left off last week. I had explained a difference between Mudarabah and…
In the last article, I had promised to explain the two aspects related to Musharakah in this week’s article. First, all…
As discussed last week, by entering into a management agreement, the appointing partners continue to remain fully responsible for the acts…
Contrary to one fixed model of a Mudarabah contract between two parties where one party invests full capital and the other…
After defining the Musharakah Mufawadah or unlimited partnership and its lack of relevance in the contemporary Islamic finance industry, in this…
I would like to draw readers’ attention to my article numbers 45–49 written in February 2019 in which I had explained…
In article 108 dated the 18th August 2020, I had quoted AAOIFI Shariah Standard No 12, Article 3.1 while explaining that…
After covering the commencement of Musharakah Inan or Sharikat Al Aqd (contractual partnership) in the last article, I would now like…
Can a contractual partnership be entered into with a non-Muslim, or can non-Muslims enter into a Shariah compliant Musharakah among themselves?…
The contractual Musharakah (Inan) has an agreed tenor with a fixed maturity date. But it is not necessary that the partners…
Last week’s article (113) explained how a partner can retire without the business of the contractual Musharakah being wound up. One…
I have so far described the Musharakah Mufawadah (unlimited and equal partnership) and Musharakah Inan (limited and unequal partnership). If you…
We are on the subject of Musharakah or partnership/joint venture and so far I have taken you all on a captivating…
Another interesting offshoot of the Musharakah genre is the retreating or fading partnership where one partner’s equity stake rises at the…
I concluded the last article 117 on the note that the beauty of Islamic financing and investment contracts is that they…
In the last article, I had described another option for providing the effect of a diminishing partnership, that is, through the…
The last paragraph of my article 119 needs further explanation. To save you from going back to the article, I append…
Welcome back and I wish readers and the IFN team a very joyous, highly productive and extremely successful 2021, such that…
Last week’s article stemmed from a question posed by a student from Universiti Sultan Zainal Abidin, Malaysia. The question is whether…
This is the 20th article on the Musharakah contract and I have taken you all to a full circle on the…
I had explained the Shariah permissibility of modern joint stock companies in the last article. Today, I will discuss the do’s…