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Home > QFINANCE Dictionary > Definition of musharaka

Definition of



Islamic partnership in which all partners invest money in Islamic financing, a type of partnership in which all partners contribute capital to an enterprise, share profits in a prearranged way, and share losses equally

musharaka - Related Articles
  • Islamic Modes of Finance and the Role of Sukuk

    Best Practice

    Broadly speaking, Islamic modes of finance can be divided into two types: either they provide direct finance as capital funds through partnership (musharaka and mudaraba), or they provide indirect finance through leasing (ijara) and sale contracts (murabaha, bai ajil, salam, and istisna
    By Abdel-Rahman Yousri Ahmad

  • Regulatory and Capital Issues under Shariah Law


    between Western and Islamic systems can differ greatly. For example, a Western regulator may question whether a shariah board’s role is advisory, and if it has executive powers. Difficulties can arise for regulators as to how to classify some Islamic financial products. For example, musharaka home

  • Islamic Capital Markets: The Role of Sukuk

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    In the case of mudaraba and musharaka sukuk, he believed that the amount the investor gets returned on maturity should reflect the terminal market value of the asset backing the sukuk and not simply its initial nominal value. The asset used as backing for the sukuk should have real financial significance
    By Rodney Wilson


Definitions of ’musharaka’ and meaning of ’musharaka’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’musharaka’ and other financial terms with our online QFINANCE Financial Dictionary.

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