NEW MUSHĀRAKAH MODEL IN MANAGING ISLAMIC INVESTMENT

A mushārakah contract is a joint venture between two or more parties and the profit is shared according to the agreed profit-sharing ratio. The new mushārakah model internalises this concept and takes into account the investment of two parties, the rate of profit, as well as two profit-sharing rates...

Full description

Bibliographic Details
Published in:ISRA International Journal of Islamic Finance
Main Author: Jaffar M.M.
Format: Article
Language:English
Published: International Shari’ah Research Academy for Islamic Finance (ISRA) 2010
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85168681801&doi=10.55188%2fijif.v2i2.109&partnerID=40&md5=f62b6d1ffbaa0fc8d903b54d92c29126
Description
Summary:A mushārakah contract is a joint venture between two or more parties and the profit is shared according to the agreed profit-sharing ratio. The new mushārakah model internalises this concept and takes into account the investment of two parties, the rate of profit, as well as two profit-sharing rates. At present, this model is the only model that uses two profit-sharing rates to ensure justice in a joint venture investment. This can create opportunities to generate other Islamic investment or banking products that will attract more foreign investors who are keen on mushārakah products. Apart from this, this can initiate other researches and collaborations in Islamic banking/financing and investment, thus enhancing the Islamic investment status. The system of the mushārakah model can definitely be commercialised. © 2010, International Shari’ah Research Academy for Islamic Finance (ISRA). All rights reserved.
ISSN:1281976
DOI:10.55188/ijif.v2i2.109