Musharaka

Musharaka, which translates to “participation” in Arabic, is a fundamental concept in Islamic finance. It embodies the principles of cooperation, sharing, and partnership. In a Musharaka arrangement, two or more parties come together, pooling their financial resources or expertise to engage in a joint venture or project. The primary objective of Musharaka is to share the profits and losses of the venture in a manner that reflects each party’s contribution and effort.

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