Morgan Lewis

This Practice Note examines the basic features of any Shari’ah compliant contract before considering the specific requirements for a musharaka arrangement, including execution, independence and permitted terms and conditions. The note also covers the additional documentation which may be required to give effect to the agreed relationships

This Practice Note covers the key principles of a musharaka arrangement and in particular looks at the different types of musharaka transaction, the method of establishing a musharaka partnership and the rules which must be adhered to for the partnership to be valid. The note also considers the usual term for such an arrangement and how a musharaka partnership may be terminated

This Practice Note considers the current status of musharaka in the market. It discusses the main issues with using the musharaka structure and considers criticisms on the use of musharaka from within the Islamic finance industry