Islamic Banking

(redirected from Musharakah)
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Islamic Banking

A system of banking that only offers products that conform to the sharia, or Islamic law. For example, in Islamic banking, checking and savings deposits do not accrue interest. They either lie dormant until withdrawal or are invested. Because this involves higher risk than conventional banking services, various highly technical products have been developed to mitigate risk and generally imitate "regular" banks as much as possible while still complying with Islamic law. Considerable debate exists as to whether these Islamic banking products are in fact sharia-compliant.
References in periodicals archive ?
That arrangement for Diminishing Musharakah contract comprises of following:
The Musharakah structure has been used to project finance an on-going project in the Gulf.
This unprecedented structure breaks away from the market norm of perpetual Sukuk, which are typically structured on the Musharakah and Mudharabah principle.
Through a concept paper presented at the consultation, IIFM sought to highlight sukuk structures particularly ijara, mudarabah, wakalah, musharakah and convertible/exchangeable sukuk in line with IIFM comprehensive development process.
Also, the AAOFI listed the Sukuk types that are mostly used as the Musharakah Sukuk, Ijarah Sukuk, Murabahah Sukuk, Istisna Sukuk, Mudarabah Sukuk, and a combination of some of these types if feasible (AL Bashir, 2008).
6 billion ($980 million) Musharakah Syndicated Facility for Emaar Malls.
7bn) sukuk musharakah programme of Malaysian asset manager Projek Lebuhraya Usahasama Berhad.
They include financial instruments and products such as mudarabah (trust financing), musharakah (equity financing), ijarah (lease financing), murabahah (trade financing), qard al-hassan (benevolence/welfare loans), and istisna (progressive payments).
John Sfakianakis, chief economist at Banque Saudi Fransi, said pri- vate securities investment included Musharakah, an Islamic financing under which a bank provides capital to a joint-venture and gets a share of profit.
John Sfakianakis, chief economist at Banque Saudi Fransi, said private securities investment included Musharakah, an Islamic financing under which a bank provides capital to a joint-venture and gets a share of profit.
Ijarah, Murabahah and Musharakah have been the main types of structures, accounting for almost 80% of the total issuance.
Mayfair Wealth Management (MWM), a major financial and investment advisory services provider based in the Cayman Islands, has extended the subscription deadline for its 'Real Estate Musharakah Notes' (REMNotes), a Shariah-compliant distressed property fund worth $50 million in the UAE, until Oct.