Editing Islamic banking and finance (section)

==== Musharakah (joint venture) ====
Like ''mudaraba'', ''musharakah'' is also a profit and loss sharing partnership, but one where investment comes from all the partners, all partners are given the option of participating in the management of the business, and all partners share in losses according to the ratio (''[[pro rata]]'') of their investment.<ref>{{cite web |title=The Declining Balance Co-ownership Program. An Overview |year=2012 |url=http://www.guidanceresidential.com/wp-content/themes/residential/images/gr-white-paper-2012.pdf |publisher=Guidance Residential, LLC |url-status=dead |archive-date=2014-09-06 |archive-url=https://web.archive.org/web/20140906133304/http://www.guidanceresidential.com/wp-content/uploads/2013/10/gr-white-paper-2012.pdf}}</ref>

''Musharakah'' may be "permanent" or "diminishing". It is often used in investment projects, letters of credit, and the purchase or real estate or property. Use of ''musharaka'' is not great. In Malaysia, for example, {{#tag:ref|according to Mehmet Asutay quotes Zubair Hasan<ref>Zubair Hasan, "Fifty years of Malaysian economic development: Policies and achievements", ''Review of Islamic Economics'', 11 (2) (2007)</ref>|group=Note}} the share of ''musharaka'' (or at least permanent ''musharaka'') financing declined from 1.4 percent in 2000 to 0.2 per cent in 2006<ref name="Asutay_2007:173">{{cite journal |last=Asutay |first=Mehmet |date=2007 |title=Conceptualization of the second best solution in overcoming the social failure of Islamic banking and finance: Examining the overpowering of the homoislamicus by homoeconomicus |journal=IIUM Journal of Economics and Management |volume=15 |issue=2 |page=173}}</ref>{{sfn|Khan|2013|pp=322-323}}