, a joint enterprise formed for conducting some business in which all partners share the profit according to a specific ratio while the loss is shared according to the ratio of the contribution.
Al Baraka Bank (Pakistan) Ltd offers a wide array of Islamic financing products such as Murabaha, Ijarah, Musharakah
, Islamic Export Refinance etc catering to a diverse cross-section of the economy including corporate, SME, and Consumer services.
The Modaraba is primarily engaged in the business of Ijarah, Musharakah
and Murabahah financing, Investment in marketable securities and other related businesses.
One of the main principles and features of Islamic banking, they don't give nor deal directly with money, rather they share-in projects according to different Sharia methods as murabaha, musharakah
, mudharabah, ijarah, etc.
Explaining further, Farah said there is Musharakah
, a partnership where profits are shared according to a pre-agreed ratio while losses are shared in proportion to the capital investment of each partner.
He stated that the institution's products such as Musharakah
Mutanaaqisah (diminishing partnership), Ijarah bi-tamlik (lease-then-purchase), Musharakah
and Mudharabah (temporary partnership), Istisna' (construction financing) and Qard Hassan (benevolent loan) had assisted its members in the acquisition of home and landed property, asset financing, improvement of the capital base of their businesses, building of personal houses and in meeting up with contingencies.
and to be managed by the SFSC namely, the Government Investment Certificates (GICs), the Central Bank Ijarah Certificates (CICs) and the Government Musharakah
He went on to describe diminishing Musharakah
as a viable mode for financing the project.
Among their topics are Shariah and its meaning in Islam, the Shariah-compliant contract: concept and applications for construction work, the application of limited liability in construction contracts from Malaysian law and Shariah perspectives, Islamic home financing through musharakah
mutanaqisah: a crowdfunding model, and managing the risk of insolvency in the construction industry with equity financing: lessons from nakheel.
'This is a huge amount and a potential area for the Islamic banking industry to tap into...The best product for that (housing project) is diminishing Musharakah
,' he suggested.
Corporate customers can benefit from Musharakah
financing, term finance, trade finance, treasury services, and working capital finance.
Alizz Islamic Bank offers Shari'ah-compliant banking solutions using Islamic contracts such as Ijarah, Murabahah, diminishing Musharakah
as well as Kafalah, Wakalah, and Mudharaba.