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Islamic Finance

  Islamic Finance   |   Terms
  • 1486
  • October 19, 2021
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Sharikat al-‘Inan

Arabic (شركة العنان) for a partnership (musharaka) that is formed by two or more parties, each of them contributes a portion of the capital and participates in management and work. By virtue of their shares, parties share in the profits and losses of the partnership. In this form of partnership, equality is not conditional either in contributed funds or efforts. Likewise, the share in profit is usually subject to the parties’ agreement and not necessarily proportionate to their contributions.

‘Inan partnership is a type of contractual partnership.


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