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Musharakah: Partnership Financing
What is a Musharakah agreement?
A Musharakah agreement creates a partnership of shared capital, management and risk in which partners share profit according to an agreed upon percentage, and share loss according to the proportion of their initial capital investment.

Musharakah are a kind of Shirkah, or sharing, agreement. Shirkahs are of different kinds of which Musharakahs are one. Musharakahs enjoy greater popularity among the class of Shirkah products because the Muslim investor increasingly seeks a means to share in a joint commercial enterprise with capital, rather than with more traditional forms of partnership.

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