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What does Musharaka mean in Islamic Finance?

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Question added by Nuridin Islam Diab , Training Manager , Bbusinesss LLE
Date Posted: 2016/03/29
Nuridin Islam Diab
by Nuridin Islam Diab , Training Manager , Bbusinesss LLE

Musharaka means (partnership / joint venture). In a Musharaka contract, both partners become involved in a joint venture project or property or business by investing capital (and in some cases entrepreneurship). Both parties share any profit or bear any loss generated by the activity. The profit sharing is based on a pre-agreed upon ratio that they both consent to before the start of the project. As for the loss sharing, it's based on the capital contribution ratio. 

Amjed Mehboob
by Amjed Mehboob , G.M -(Currently Job Seeking ) , Advance Education centre

Thanks for inviting me , i agree with Nuridin Islam Diab answer

HASSAN AHMED
by HASSAN AHMED , Internal Auditor , TIE

Thanks for the invitation... It's an agreement is which Islamic banks provide fund which mingled in the fund of business entities and others. Musharakah is derived from Shirakat means to participate. All fund providers are entitled to participate in the management as well. In other terms Musharak is like Joint venture.

حسين محمد ياسين
by حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

agree with answers ..............>>>>>>>>>>>>>>>>>>>>>>>>>

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

agree with ur answer                        .

Mohammed Amin Petiwala
by Mohammed Amin Petiwala , CFO , Osool Poultry SAOC

Agree with Nurudin Islam answer as above

Rami Assaf
by Rami Assaf , loading and Storage Operations Supervisor , Arab Potash Company

Thanks for the invitation

 

 I agree with the answer by Mr.Nuridin Islam Diab

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Thanks for the invite I agree with  experts answer

ghazi Almahadeen
by ghazi Almahadeen , Project Facilitator , Jordan River Foundation

Thank you for your invitation ............... waiting for an answer Experts

Mohamed Helal
by Mohamed Helal , Project Manager , GROUP CONSULT INTERNATIONAL

Thanks for invitation....I endorse your answer

Thank you for your invitation I agree with your answer

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