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Islamic Finance

  Islamic Finance   |   Terms
  • 1061
  • September 12, 2021
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Sharikat al-Aqd

Arabic (شركة العقد) for a type of sharikah (partnership) that is formed by means of mutual agreement between two or more persons who agree that each of them contributes to the capital of the business and is entitled to a corresponding share in its financial results (profits or losses). The contracting parties agree to combine their assets, efforts, and/or liabilities for the purpose of making profits. Sharikat al-aqd is traditionally classified as: sharikat al-inan, sharikat al-wojooh, sharikat al-mufawadhah, and sharikat al-a’maal.

This type of sharikah is also known as sharikat al-uqud.

Sharikat al-aqd is Arabic for contract partnership or contractual partnership.


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