Islamic finance has an array of structures to deal with various commercial needs, but adhering to Islamic law (Shariah) principles. One commonly used structure is Musharakah.

What is Musharakah?

Musharakah is similar to a joint venture. It allows equity participation by the parties, who finance a project in agreed proportions in either cash

Islamic finance transactions are based on Shariah (Islamic law).

For an Islamic finance structure to be Shariah compliant it cannot contain elements of riba (interest), gharar (uncertainty), maisir (gambling) or investment in prohibited industries such as alcohol, pork products, conventional finance and pornography.


Shariah deems money to have no intrinsic value – it is