Musharakah

Banking participation is an investment and financing formula that is compatible with Islamic law, aiming to achieve profit through a partnership of funds between the bank and individuals. This participation is established between two or more individuals with the aim of practicing commercial business, where each party contributes capital or administrative effort. Through this participation, banks seek to obtain financing, while individuals seek to achieve profits from their participation.

Types of service:

• Fixed participation (long-term): depends on the bank’s contribution to financing part of the capital of a specific project, making it a partner in the ownership of the project and in the profits or losses.
• Diminishing participation ending in ownership: allows the partner the right to obtain ownership of the project either in one payment or in installments, according to the agreed terms.
• Variable participation: is considered an alternative to financing through the debit current account, where the client is financed with cash payments according to his need while taking a share of the profits during the year.
• Permissibility partnership: relates to the general participation in the rights to own permissible things such as water, pasture and fire.
• Property partnership: includes the participation of two or more persons in the ownership of a specific property with a financial value, such as the partnership of inheritance and spoils.
• Contract partnership: includes contracts for participation in capital and profits, and includes types such as the partnership of the rein, the partnership of negotiation and the partnership of bodies.