Musharakah
Musharakah is an Islamic finance concept where two or more parties come together to invest in a project or business. Each partner contributes capital and shares in the profits and losses according to their investment ratio. This partnership structure promotes cooperation and mutual benefit, aligning with Islamic principles of fairness and transparency.
In a Musharakah agreement, all partners have a say in the management of the venture, fostering a collaborative environment. This model is often used in various sectors, including real estate and business financing, as it adheres to Shariah law by avoiding interest-based transactions.