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 ?
Musharakah refers to a partnership based on joint ownership in an enterprise or asset where the resulting profits and losses are shared between the partners.
Musharakah is a form of Islamic financing where a joint enterprise or partnership is formed and partners share the profit and loss.
Rama Homes' entry is, however, backed with an Islamic financing model- the diminishing Musharakah."This is an Islamic financing concept where the developer and the homebuyer partner in getting the unit done, then the customer will slowly pay back the cost in six years," said Mr Adrash Hussein (inset), Rama Homes' sales manager.
Alizz Islamic Bank, one of the pioneering Islamic banks in Oman, has continued to offer home financing products based on the Diminishing Musharakah contract, which refers to a joint partnership contract between the financier and its client.
The awards were: Best Assets-Backed Securitisation Deal in Southeast Asia 2017, Best Musharakah Deal in Southeast Asia 2017, Best Mid-Cap Equity Deal in Southeast Asia 2017 and Best Secondary Deal in Southeast Asia 2017.
Ahmed bin Mohammed al-Futaisi, Minister of Transport and Communications will patronize next Thursday at the Crowne Plaza Hotel, Muscat over the concluding ceremony of Musharakah Conference 2017.
The Group has so far availed three types of Islamic finance financing tools, Musharakah, Ijarah and Murabahah.
Bakri Hassan Salih under the slogan: Productive Security Networks to Consolidate Progress), his ministry endeavored to diversify the institutions as well as the development of collateral formats, mudarabah (speculation), Musharakah (partnership) and other formulas that could increase funding opportunities and raise guarantees, referring to the expansion of microfinance umbrellas, focusing on training of microfinance officers and concern with the small-scale producers.
Key initiatives taken during the quarter include launch of BankIslami (Bank mobile app), repackaged version of Auto Finance product, Diminishing Musharakah product for corporates & remittance agreement with Ria Financials Services, a globally renowned money transfer company.
This unprecedented structure breaks away from the market norm of perpetual Sukuk, which are typically structured on the Musharakah and Mudharabah principle.
Musharakah: Musharakah is similar to venture capital financing.
Banque Misr has concluded an EGP285 million Islamic funding agreement of MMP (Dimishing Musharakah) with Upper Egypt Electricity to develop and renovate the Al-Waledeya station in Assiut.