Musharika

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Musharika

A partnership in Islamic finance in which all partners contribute capital. For example, if Joe wants to start a business, he may form a musharika into which he places $20,000. A bank may then contribute $40,000 and split profits with Joe based upon some agreed-upon formula.

Musharikas are important in Islamic finance in part because they are the most straightforward. That is, a musharika does not attempt to imitate a debt product, which is controversial. Rather, it simply involves equity financing by an investor. However, musharikas are difficult to structure in some non-Muslim countries, especially the United States, because some banks are not permitted to make equity financing arrangements.
References in periodicals archive ?
There are three common structures used in Islamic venture capital, namely mudaraba, musharaka and wakala," says Ahmad Syahir Yahya, partner at Kuala Lumpur-based law firm Azmi & Associates, adding that the mudaraba concept being the most common.
The company through lawyer Tom Ojienda filed an application saying in a letter dated November 20,2014, National Bank offered working capital under its Islamic products christened Investment Musharaka a loan of Sh245 million which was approved, but he only got Sh145million.
Iraq-based Al-Thiqa Islamic Bank is a newly registered bank and it will be implementing ICSFS' universal Islamic flagship, ICS BANKS ISLAMIC Core Banking, Murabaha, Musharaka, Ijara, Mudaraba, Al Qard Al Hasan, Time Deposit, Profit Distribution Trade Finance Module, Credit Facilities & Risk Groups, Remittances.
The theme of Musharaka Conference is 'Empowering the Future of Electricity' and will address several topics in this area.
Likewise previous quarters, Diminishing Musharaka remained the leading mode for financing followed by Murabaha and Musharaka.
The deal included Islamic tranches implemented under the musharaka structure.
In 2015, the use of debt instruments increased signifi- cantly with the issuance of Islamic T-bills and government guaranteed Musharaka sukuk from the Central Bank and government ministries, at a value of 2.
Last March, the Sudanese army said its troops captured Um Serdiba, "the main rebel stronghold in Kadugli sector", and Musharaka area.
Musharaka conference will shed light on the latest developments of Nama'a Group which comprises five main pillars namely customer services, asset management, human resources, health & safety and communication.
The workshop, which was attended by Dubai Chamber members, lawyers and legal professionals, investors, corporate counsels, investment advisors and bankers, shed light on the background and techniques involved in Mudaraba, Ijara, Istisna'a and Musharaka as well as Sukuk transactions.
Eskan Bank's REIT will consist of two income-generating and unleveraged properties currently owned by Bahrain Property Musharaka Trust (BPMT) which was formed in May 2011, in collaboration with reputable institutional investors and high net worth individuals.
Given relatively lower rates, the managements focus remained on mobilizing short-term certificate of Musharaka.