Al-Musyarakah is defined as a joint venture on profit / loss sharing between a bank and customer whereby the customer
has to contribute part of the capital in a joint venture project. The profit derived from the project shall be distributed at a
profit ratio as agreed between the bank and the customer.

Benefits

• Customer shares the profit from the venture as provided in this agreement;
• The absolute return on the investment depends on the profitability of the venture.

Features

• Project/contract is required;
• Customer places with the bank a deposit for his share of the cost of goods to be purchased (marginal deposit);
• Bank accepts the deposit under the principle of Al-Wadiah Yad Dhamanah.
  Payment made by the bank by utilising the customer’s deposit as well as its own share of financing;
• Upon completion of the project, the parties share the profit/loss.