Partnership (Musharakah)

 

Partnership (Musharakah) is one of the partnership contracts that can be used to finance short, medium or long-term funding needs of customers with secured contracts and guaranteed payments or other viable commercial ventures.

By this financing contract, the Bank and its customer enter into a partnership contract whereby each party contributes to the capital of the partnership in equal or varying degrees. The purpose of this is to establish a new project or share in an existing project. The risks and rewards of the venture invested in are borne and enjoyed together.