NAME OF GROUP 11 :

KUNI QONITA

HIMATUL

LAILY HIDAYATI (C92216171)

MUSHARAKAH OR PARTNERSHIP

A. The Definition of Musharakah / Partnership

The important instruments used by Islamic Banking to provide financing besides

Mudharabah is musharakah/partnership or equity participation. The other terms used to
Musharakah is shariah or syirkah/partnership. The Islamic financial institutions interpret it with
“Participation Financing”. In a narrow meaning, musyarakah called as “Partnership”, or
“Fellowship” .

As well as mudharabah, musharakah or partnership is contract of cooperation or business

two or more owners or skill to do the type of business that is lawful and productive. The
difference with mudharabah is in the distribution of profit and loss, and involvement of
participations in work that is being worked on.

Legal Norm from Musharakah or Partnership based on three is :

1. Al-Qur’an (An-Nisa- 12)

ِ ُ‫ش َر َكا ٓ ُء ِفي ٱلثُّل‬
‫ث‬ ُ ‫فَ ُه ۡم‬
Means: So, they allied in one-third

2. As-Sunnah
“According to Abu Hurairah, the prophet Muhammad p.b.u.h said “I was the
third of people who were allied, as long as one of the two doesn’t betrayed his
friends, I will get out of the partnership if one of them betrays him”. (HR. Abu
Dawud)
 3. Al ijma’
The Muslim Ulama’ argue that syirkah is allowed. It is just that they have
different opinios about the type.

B. The purpose and benefits of Musharakah / Partnership

1. Give profits to member of the capital owners.

2. Create job fields

3. Give financial assistance from half of the Musharakah business results to build
worship places, schools and etc.

C. The majority of Ulama Argue that there are 4 pillars of Musharakah / Partnership

1. Shighat, Is the expressions that came out from each of the two parties who transacted and
show the desire to do it. Shighat includes ijab qabul is valid with all things that shows the
Musyarakah or Partnership means, either it is action or expression.

2. ‘Aqhidain, Two parties who do the transactions. It is recommended for both to be competent
in law.

3. The transacted object (main capital), both in the form of assets or work. The main capital in
the form of assets may not be as assets owed or unknown object because it cannot be works as it
is for the purpose of msharakah or partnership, is to get a profit.

D. According to the ulama agreement, there are some terms of Musharakah or Partner
Ship

1. Two parties who make transactions should have ability / skills to represent and accept
representatives

2. The capital of Musharakah or Partnership is known

3. The capital of Musharakah or Partnership is available at the time of the transaction.

4. The amount of profit is known with summation, such as a half and etc.
E. The Distribution Of Musharakah or Partnership

Musyarakah have been divided into two types, there are Musharakah or Partnership of ownership
(Musharakah al-amlak) and Musharakah or Partnership of contract (Musharakah al-aqd).

1. Musharakah or Partnership of Al-Amlak, created because of heritage, heirloom or the other

condition that cause ownership of one asset by two people or more are forced in positive law
without a contract.

a. Musharakah or Partnership of Ikhtiar, that appears because of a contract from two

people who are allied.
b. Musharakah or Partnership of Ijbar, which is stipulated for two people or more who are
not based on their actions, like two people inherit something, then the one given the
heritage become their allies.

2. Musharakah or Partnership of Al-Aqd, created because the agreement between two people or
more who agreed that each of them give the contribution from the capital musyarakah, they also
agreed to share their profits and losses.

a. Musharakah or Partnership of Inan, Is the combination of asset or capital between two

people or more which is not always the same amount.The profits and losses divided by
the both agreement. The ulama fiqih agreed that musharakah or partnership of inan is
allowed.
b. Musharakah or Partnership of Al-Mufawadhah, Is the combination where the capital of
all parties and the form of cooperation they do, must be the same.
c. Musharakah or Partnership of Al-Abdan, Is the union in the form of work whose the
results are divided based on the agreement. It means that, the union two people or more to
accepting a job such as ironworker, porter, and etc. According to ulama’ Malikiyah,
Hanafiyah, Hanabilah, Zaidiyah allows this. Because the purpose is to looking for profits
with working capital together.
d. Musharakah or Partnership of Al-Wujuh, Is the union without capital, it means two
people or more buy an item without capital, and then what happens is just hold on to a
good name and trust the traders to them. This musharakah or partnership responbility
without work and capital. According to Syafi’yah, Malikiyah, Zahiriyah, dan Syi’ah
 Imamiyah, this type of musharakah or partnership as called capital and job must be
available. According to ulama’ Hanafiyah, Hanabilah, dan Zaidiyah the law is allowed
because it is still in the form of job and the parties can act as representative. Besides that,
they reasoned that this syirkah has been carried out by Muslims and no one opposed it.
e. Musharakah or Partnership of Mudharabah, Is the agreement between capital and
worker to manage money from the capital owners in a certain trade whose profits are
divided based with the agreement. Principle of Musharakah or Partnership of
Mudharabah:
1. The union parties that is competent will act as a representative.
2. The capital is cash
3. The amount of capital is clear
4. Given directly to the workers
5. The division of profit is taken from the union, not from other assets.

But, according to jumhur ulama’ (Hanafiyah, Malikiyah, Syafi’iyah, Zahiriyah, Syiah

Imamiyah) it does not include mudharabah transaction as one form of union, because
mudharabah is separate contract in cooperation form which is not called a union.

F. The Application of Musharakah or Partnership on the Islamic Banking

The types of Musharakah or Partnership used in Islamic banking is: Trade Musyarakah
participations are decreased and permanent participation.

a. Musharakah or Partnership of trade business

An agreement of musharakah or partnership usually is the specific purpose, like buying

and selling a machine or commodity. Both the bank or the partners give capital, but the partner
runs the purchasing, sales, marketing and accounting management related to the transaction. The
function of banks is to finance transactions that are part of it, provide necessary banking services
such as opening Letters of Credit when needed, and to monitoring the progress of musharakah or
partnership through the last record of the periodic progress reports from the partner. There is no
standard capital ratio given in trade musharakah or partnership. In the Islamic bank of Sudan, for
example the partner's capital contribution can reach forty percent, especially in transactions.
b. Participation decreases

"Decreased participation" is defined as a partnership with which the bank helps the
partner to be able to have one project in stages, based on the terms in the musharakah or
partnership contract. The customers of this type of musharakah or partnership are those who are
not interested in the permanent co-participation of the bank in their project and those who hope
to get full ownership of the project as soon as possible. This type of musharakah or partnership is
used to participate in new or service-based industrial or agricultural projects, rather than in trade
partnerships. Islamic banks give partial funds from capital with terms that the bank will receive a
percentage of the profits generated from the project during this period that the capital has by the
bank will be returned in installments. Reducing bank participation can be done in one of the
following ways:

Bank and customers deal with capital contribution in musharakah or partnership and the
terms of the contract. When a musharakah or partnership contract is completed, another separate
contract is signed, a contract that will allow the bank to sell stock to the customer or to another
customer. This both contract will state how to sell these stocks and their period time. In this case,
the buyer must pay the bank stocks in installments.

c. Banking

The customer's bank states that their investment in musharakah or partnership will be in
the form of stocks representing all musyarakah values. Each party will receive profits based on
the number of stocks they have. Customers are free to buy whatever stocks they have can buy all
of the stocks bank. In the end, the customer will become the sole owner of the musharakah or
partnership.

The bank deal with customer to financing a project, either with full funds or so on from
the bank, provided that the bank will receive part of its profits on a regular basis and hold all or
part of the partner's profit to cover financing disbursed by the bank.

Although, the three types of methods were alloweded by the Islamic Banking conference
in Dubai in 1070, the last method according to Al-Siddiq Muhammadiyah Al-Amin Al-Dlarir
was similar because the bank entered one of these transactions from the beginning, on a
condition that the bank will recover all the costs it distributes, and after all, the bank receives a
profit of a percentage of the project.However, these three methods seems to be practiced by
Islamic banks such as the International Islamic Bank for Investment and development and
Tadamon Islamic Bank.

d. Permanent Participation

Permanent participation is defined as a musharakah or partnership contract that the bank

finances a portion of the capital of particular project as a stockholder,and the bank participates in
the management and supervision of the project together with its partners, with terms that the
bank will share project profits or losses as agreed in the contra. The term "permanent" does not
mean forever, because this type of partnership only runs till the project is done, or till the end of
time that determined for musharakah or partnership. The example of musharakah or partnership
contract: in agricultural business.

Modal : capital

Involvement : keterlibatan

Allied : bersekutu

Heritage : warisan

Funds : dana

Inherit : diwariskan

Specified part : bagian yang ditentukan

Summation : penjumlahan

Such as a half : seperti setengah

Heirloom : Wasiat
 CONCLUSION

Musharakah is participation of two people or more in a particular business with the

amount of capital that determined based on the agreement to jointly run a business and share
profits and losses in the specified part. Musyarakah is included in the tijarah contract.
Musyarakah contract is created by an agreement whereby two people or more agree that each of
them gives Musharakah capital and also agree to share mutual profits and losses.