DefinePK

Research Objective

To discuss the mode of Musharakah (partnership) concerning ownership in light of Islamic Sharia, considering current practices in Islamic Banking, and to reconcile modern applications with traditional juristic opinions.

Methodology

Analytical method employed, incorporating a review of traditional and modern views regarding partnership, defining terms in detail, providing examples, and applying Sharia regulations. Arguments were presented from the Holy Qur'an and Hadith, citing opinions from Muaddithun and Islamic Law scholars from original sources.

Methodology Flowchart

                        graph TD; A[Define Musharakah Meaning & Terms] --> B[Review Traditional & Modern Views]; B --> C[Apply Sharia Guidelines & Fiqhi Differences]; C --> D[Examine Arguments from Qur'an & Hadith]; D --> E[Analyze Diminishing Musharakah Specifics]; E --> F[Determine Consistency with Origin]; F --> G[Conclusion on Modern Practice Validity];                    

Discussion

The paper explores the concept of ownership within the partnership structure (Musharakah) as applied in Islamic Banking for acquiring assets like houses, shops, and markets. It contrasts the lawful nature of these dealings under Islamic jurisprudence (Fiqh) with the need to address contemporary applications. The study aims to clarify doubts by examining different Fiqhi schools, their forms, and features, ensuring compliance with Sharia guidelines derived from primary sources.

Key Findings

The modern method of partnership, specifically the diminishing Musharakah contract, is consistent with its origin and traditional permissible mode, provided specific conditions are met. In diminishing Musharakah, the client pays all expenses consequent to ownership. This mode is therefore included in the financing issues of Islamic banks.

Conclusion

The modern form of partnership financing, exemplified by diminishing Musharakah, is deemed consistent with traditional Islamic permissibility under specific conditions, making it a valid tool for Islamic banks to provide essential articles to customers.

Fact Check

1. The study discusses the application of Musharakah in Islamic banks, citing Meezan bank, Alfalah bank, and Summit bank as examples that have adopted this type of program.
2. The methodology involved applying guidelines from Sharia regulations and examining arguments from the Holy Qur'an and Hadith.
3. Diminishing Musharakah is specifically mentioned where the client pays all expenses consequent to ownership.

Mind Map