MUSHARARAKAH
Musharakah – which is derived from the arabic word ‘shirkah’ – refers to the concept of joint ownership between two or more partners for the purpose of either profit making or for enjoying common ownership in an asset.
In context of venture capital financing, wherein the purpose of the entity is partial funding in its business, Musharakah offers the ideal solution. Under this concept, as long as the nature of business activity is shariah compliant, Rizq will provide you with the required finances and become a joint owner in your business to the extent of its ownership ratio. Accordingly, it will become a partner in the profit/ loss generated by the business as per pre-agreed ratios.
