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Islamic Finance

  Islamic Finance   |   Terms
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  • November 15, 2021
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Sharikat Ikhtiyar

Arabic (شركة اختيار) for a subset of sharikat al-mulk which represents a voluntary or optional general partnership that comes into existence due to the agreement of the partners. For instance, two persons may agree to purchase a plot of land by contributing equal or unequal shares in capital. Once the purchase is carried out, these two persons become co-owners of that plot of land. Sharikat ikhtiyar may also arise from joint ownership of properties bequeathed or given out (by way of gift). The would-be partners have the right (ikhtiyar) to accept or reject such a partnership.


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