Search Islamic Finance Answers

1,000+ scholar-approved answers and growing...

Shirkah tul Milk

What is meant by Shirkah tul Milk? How does it work in practice?

Shirkah tul milk is partnership in property. Two or more individuals may jointly purchase or inherit land or equipment in such a partnership. They may choose to divide the property, either physically by distributing it equally among owners (e.g. land is divided into 4 parts among four individuals), or sequentially by sharing the number of days that the property is used (e.g. a tractor is used one day by one owner and the next day by the other owner).

The owners may also choose to share the asset without any clear division if it can be done so amicably. In the event of an agreed upon sale, proceeds distribute in proportion to ownership.

7 Day Free Islamic Finance Course

Please enter your first name and email address to start receiving your CIFE™ lessons instantly!

We value your privacy. We will never rent, sell, or spam email addresses.

ASK AN ISLAMIC FINANCE QUESTION

Each question is reviewed by an Islamic finance expert and approved by a scholar.

Ask Now »

SEARCH ISLAMIC FINANCE Q&As

Browse one of the world's largest database of Islamic finance Q&As available online.

View details »

What’s New at Ethica

Press releases, live events, book recommendations, discount offers, and more

View details »