Riba-Free Musharaka Finance | Bank of Khartoum

A Shariah-Compliant

Partnership for Growth

Musharaka Agreement

Musharaka is an agreement between two (or more) parties to contribute to a particular business activity, existing or new, under an arrangement resulting ultimately in one party acquiring full ownership. Profits are shared in accordance with the agreement between the parties. Losses are shared in proportion to relative shares of capital. Bank of Khartoum Musharaka is a Shariah Compliant finance solution that has been structured in a manner which ensures that the principles of Shari’ah related to Diminishing Musharaka have been strictly followed thus making it Riba-Free.

Features

Profit is shared according to the pre-agreed profit-sharing ratio.
Loss is shared proportionate to the share of investment.
Each partner has the right to participate in the management of the business.
The entrepreneur will manage the enterprise.
The Bank shall take part in the policy and decision-making as well as oversee the operation of the enterprise.
As the entrepreneur shall manage the enterprise, the Bank may pay more of profit to him than that of proportionate capital investment.
Loss, if any, shall be shared based on equity ratio.
A written agreement incorporating therein all the terms and conditions shall be executed by the parties involved.

Benefits

Customers become co-owners of the venture, giving them a sense of control and active participation.
Customers can earn higher returns compared to traditional investments.
Customers share the risks involved in the project, lowering the individual burden.
Musharaka follows Islamic values, offering a responsible and ethical investment option.
Musharaka can be customised to fit each customer’s unique needs and goals.