Musharaka Documentation and Transaction Mechanics
Type
Practical Guidance
Document type
Practice Note
Date
14 Jan 2022
Jurisdiction
Kuwait
Taxonomy
Islamic Finance
Copyright
LexisNexis
Overview
This Practice Note presents a high level analysis of the documentation and transaction mechanics of musharaka transactions.
Definitions
CBB : Central Bank of Bahrain.
BNM : Bank Negara Malaysia.
Practical Guidance
Introduction—transactional Islamic finance
There are a number of different opinions and principles iterated by Sharia board members when interpreting Sharia law in commercial situations thus resulting in what would appear to be discrepancies in the use of legal documentation within Islamic finance transactions.