Islamic finance contracts and instruments practiced in Islamic banks : offering Musharakah and then Murabahah sale to the partners

Fatawa Question

Salam Q : 1-could a bank enter in a Musharakah project whereby it provides funds to a client who has an option to buy piece of land at a lower price than the market price on the basis of 60 % (bank)-40 % (client) where by the purchased land will be registered in the name of the bank. 2-The land contains an old building which needs rehabilitation and the bank is going to finance his client (partner) by means of Murabahah to fund the project which later will be sold as housing apartments subsequently the Musharakah will dissolve after selling the whole lots Thank You

Fatwa

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Publication Date

2008-06-12

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Management
• Derivative securities
• Resale on profit
• Co-ownership
• Partnerships
• Islamic Banks

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-730661

• APA
• MLA
• AMA