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MUSHARAKA

Joint Venture and Joint Working

The musharaka contract supports a joint venture business activity in which all partners contribute capital, labor, and expertise. The profit and losses are shared among all parties based on agreed-upon ratios.

With musharaka sukuk, the sukuk holders (investors) are the owners of the joint venture, asset, or business activity and therefore have the right to share its profits. Inates in the decision-making process. Musharaka sukuk can be traded in the secondary market. a musharaka sukuk, unlike sukuk based on mudaraba, a committee of investor representatives particip.

The musharaka sukuk process begins when an obligator signs a musharaka contract with the SGSBank that specifies a profit-sharing ratio and indicates that the obligator will transfer assets (such as cash and property) to the joint venture.