Contemporary Practices of Musharakah in Financial Transactions
Contemporary Practices of Musharakah in Financial Transactions
Author(s): Aishath Muneeza, Fikry Musthafa, Andi Lukman Hakim, Asas Worasutr, Mohamad Firdaus, Muhammad Farhan, Mudeer Ahmed Khattak, Takao MoriguchiSubject(s): Business Economy / Management, Islam studies, Methodology and research technology, Social development, Management and complex organizations, Sociology of the arts, business, education, Financial Markets, Social Norms / Social Control
Published by: New Millennium Discoveries Ltd
Keywords: Islamic Finance; Musharakah; Shariah; Takaful; Equity Participation Contract; Profit and Loss sharing; Financing Contract; Sukuk;
Summary/Abstract: Musharakah, which is translated as “joint venture or partnership” or “profit and loss sharing contract” is regarded as an ideal financing contract in Islamic finance. Musharakah has been applied to Islamic banking and Islamic capital market across the world and it is also proposed as one of alternative model in takaful business. Musharakah contract is also combined with other contracts and interesting products such as Musharakah Mutanaqisa has been developed. However, there are considerations concerning the principles of Shariah. This paper aims to discuss these matters and offer recommendations in order for Musharakah to be more widely accepted and adopted by the Muslim communities across the world. It is anticipated further research can be conducted to find out the implication of applying AAOIFI resolution on Musharakah or equity based products to find out the effect of it on different jurisdictions with different domestic laws and rules.
Journal: International Journal of Management and Applied Research
- Issue Year: 3/2016
- Issue No: 2
- Page Range: 65-76
- Page Count: 12
- Language: English