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Investment In Musharakah Capital In Form Of Murabaha
Is it permissible for a client of a bank to contribute his share of investment in a Musharakah by means of a Murabaha, while the bank makes its investment in cash?
It is not permissible for a client to contribute his share of investment in the Musharakah by means of a Murabaha. It is a condition for a valid Musharakah that both parties make investment in either cash or in-kind, whereas a Murabaha is a sale transaction. In such a case, the bank will be considered the sole investor, with all investment yields accruing to it alone. The Murabaha transaction, if entered into with the client, will be kept entirely separate from Musharakah.

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