- In Islamic commercial law, partnership is known asshirkah . A
natural certainty contract.
- Shirkahrefers to bothjoint ownership and commercialpartnership,
whereasMusharakahrefers to aspecific type of commercial partnership
(i.e. shirkah-al-amwal or finance partnership with limited
- Undercommercial partnership- the liability is borne by partners
(i.e. the legal form of partnership).
3. Types of shirkah
- where there isa joint ownership of two or more personsin a
particular property. For instance, when two or more persons
purchase equipment, the equipment will be jointly owned by both
parties. This type of partnership is not necessarily meant for
- where a partnership is affected by a mutual contract or
commonly known as joint commercial enterprise .Agroup of
individuals share the capital and profit.
4. Shirkah al milk Shirkah al aqd COMMERCIALPARTNERSHIP FINANCE
al-amwal WORK al-amal CREDIT- WORTHINESSal-wujooh SHIRKAH
JOINTOWNERSHIP COMMERCIALPARTNERSHIP 5. Shirkah al aqd
- Shirkah-al-amwal (wealth/finance ) whereall the partnersinvest
money as capital into the partnership/ a venture. Similar to
howshareholders provide capitalto a corporation through an initial
public offering (IPO).
- Shirkah-al-amal (work)where the capital in the partnership is
thepartners skill(i.e. work). The partners would render some
services for their customers, and distribute the fee received
according to an agreed ratio.
- Shirkah-al-wujooh (creditworthiness) . In this type of
partnership, thepartners purchase commodities on creditandsell it
for cash . Thus, their capital is their creditworthiness. They have
no monetary investment in this partnership.This partnership isbased
on goodwill . Theythen share the profits after selling the
commodities at the spot price.
- Al-amwal are divided into:
- All partners willcontribute capitalinto the partnership andmay
participate in the managementof the business.The partnersliability
is limited to the capital contributed by them . They arenot
guarantor for the other partners. The amount of capital contributed
could vary among partners (i.e. this partnership does not require
- The partners could contribute any amount of capital and they
havea limited liability(they arenot liable towards the liability of
the other partners ). When profit arise the partners could either
share it according to thecapital ratio or any ratio agreedby the
partners. Anyloss will be distributed according to thecapital ratio
- Roza and Mona form anInan partnershipwith capital of RM40,000
and RM60,000 respectively. The profit earned for the first year was
- i) How much profit to partners, if the profit sharing ratio
agreed was1/3to Roza and2/3to Mona?
- ii) There is a loss of RM35,000 in the 2 ndyear. The agreed
ratio was3:4.How is the loss distributed among the partners?
- iii) If Mona bring an additional capital of RM40,000, what
would be their share of profit if the profit ratio is1:2and the
profit is RM95,000?
- All partners will contributeequal capital into the partnership
and may participate in the management of the business.
- This form of partnership requirescomplete equalityas a
condition for its formation.
- Thus, the partnersmust contributeequal amount of capital and
they areguarantor for each other .
- The liability of the partners in this form of partnership
isjoint and several liabilities .
- In other words, the partners in Mufawadah partnership
haveunlimited liability .
- They not onlybear their own liabilitybut alsothe liability of
the other partners.
- The condition ofcomplete equalitymust be strictly
- If the condition is violated, then Mufawadah partnership will
automatically convert into Inan partnership.
- Profit and lossis shared equally .
10. MUDHARABAH 11. Definition
- Mudharabahis apartnershipwhere onlyone partner contributes
moneyto another for investing it in a commercial enterprise.
- The investment comes from thefirst partnerorrabbul-mal(capital
provider) and the other party who will take the responsibility of
managing the investment is calledmudaribor entrepreneur.
- Mudharabah is not loan to the entrepreneur. It iscapital
forwardedin a partnership venture.
- In this partnership,one party will contribute capital (known as
rabb al-maal capital provider) andanother party will run the
business (known as mudarib or entrepreneur).
- Thecapital provider is not allowed to participatein the
management of the business .
- A profit from the business it will be shared according to
theprofit sharing ratio .If there is loss,the capital provider will
absorb the loss.
- Theentrepreneurwill loose all the effort and time put into the
- However if it was proven that the entrepreneur wasnegligentin
conducting the business,he will have to bear the losses.
- TheHanafiand theHambalischools call this partnership
asMudharabah , while theShafieand theMalikischools call
- Although the capital providercould not interferein the
management of the business, hecould however set conditionsthat must
be observed by the mudarib.
14. Types of Mudharabah
- Al-Mudharabah Al-Muqayyadah (Restricted Mudharabah):
- Therabb al-malhad spell outspecific conditions(for example
specifying certain type of business to enter or not to enter,
specifying which market to play in or avoid and etc.) that
themudaribmust comply with. If themudaribfails to do so, he would
violate the partnership agreement and would have to be liable for
any losses that incurs.
- Al-Mudharabah Al-Mutlaqah (Unrestricted Mudharabah):
- Therabb al-maldoes not specify any condition. Thus,
themudaribhas the liberty to conduct the business according to his
15. Rules in Mudharabah
- 1. Distribution of Profit and Loss
- Thepartnersmustdetermine a profit sharing ratio(PSR) at
theinceptionof the contract anddistribute actual profitbased on
this ratio. If there isloss,thecapital provider will absorb the
loss . The entrepreneurwill loose all the effortandtimeput into the
- 2.Rights of the entreprenuer
- Theentreprenuerasthe active partnerhas the right to transact
with the capital provided. Therefore he hasthe right sell and buy
goods on credit and follow the customs of trade.
- He also hasthe right to enter into a partnership with a third
partyandgive out capital to a third partyon the basis ofanother
16. Rules in Mudharabah
- Hecan purchase on creditbeyond the capital of Mudharabah. This
would result thepartnership to be indebted to a third party .He
needs to get theconsent of the capital providerbefore entering into
this kind of transaction.
- He maylend the moneyto a third party orextend gift/donationwith
the capital of Mudharabah.
17. Application of Mudharabah
- Double Mudharabahis likesub-leasingorsub-contracting , where
the entrepreneur that received theMudharabah capital,gives this
money to another entrepreneur in a second Mudharabah agreement like
the following Example 1:
- 1. Faridgave RM 150,000 toSharifahto start a grocery storeon
the basis of Mudharabah.
- 2.Sharifah however extended this money on anotherMudharabah
basis toSumaiyahto run the business.
- Sharifah is themudaribin thefirst Mudharabahand becomes therabb
al-malin thesecond Mudharabah .This practice is allowable in
Shariah and has important implication in the banking industry.
18. Application of Mudharabah
- Ar Rajhiis a new Islamic bank that offers its depositors
Mudharabah Investment Account (MIA). Depositors could place money
in the MIA for different maturities. They wouldagree on a profit
sharing ratiowhen placing money in the account.
- Thedepositorsare thecapital providerwhileAr Rajhiis
theenterpreneur .Thebank would then invest this money(usually in
the capital market).
- Atmaturity , Ar Rajhi bank would distribute any profit
according to the PSR. If there are any lossess, thedepositors would
have to absorb it .
19. Application of Mudharabah
- The depositor can invest the money inGeneral Investment
Account(GIA) orSpecial Investment Account(SIA).
- GIA is based on Al-Mudharabah Al-Mutlaqah(Unrestricted
Mudharabah) where the depositordoes not have the option to set any
conditionto the banks investment policy.
- SIA is based on Al-Mudharabah Al-Muqayyadah(Restricted
Mudharabah) where thedepositors could set conditionson the banks
- Due to this factor,SIArequireshigher minimum investment
amountand this in turn givesthe SIA depositors the ability to
negotiate the PSR with the banks.TheGIAdepositors on the other
hand, areoffered standard investment scheme and fixed PSR.
20. Bank Syariah (Shahibul Maal) KEUNTUNGAN BAGI HASIL
Mengikutcontribution of capital (nisbah) MODAL NisbahX % NisbahY%
SKEMA MUDHARABAH 4 1 2 2 3 3 Pelanggan ( Mudharib)
Ansuran/sekaligus Proposal Projek/Usaha Tenaga/Keahlian Modal
100%Pengembalian Modal Pokok 21. Prinsip Distribusi Hasil Usaha
22. CONTOH PEMBIAYAAN MUDHARABAH En. Ahmad memiliki gudang
perniagaan gula untuk dihantar kebeberapa pasarayadan restoran
dengan mendapat hasil RM50,000 sebulan dan berazam untuk menambah
modal kepada RM250,000. Untuk meningkatkan volume, usaha
hinggamencapai hasil yang diharapkan sebanyak RM75,000 sebulan.
Bank Islam telah membantu En. Ahmad untuk menyelesaikan masalah
diatas dengan bersetuju untuk memberi pembiayaan Mudharabah
(assuming the profit expectation 20% for Bank Islam) 23.
Perhitungan Bank : - Pembiayaan dari Bank : RM.250 juta -
Keuntungan diharapkan Bank: 20% x RM250,000 = RM50,000 atau
RM600,000 setahun. - Hasil usaha selama 1 thn: RM75,000sebulan x 12
bln : RM900,000 setahun. - Maka nisbah bagi hasil Bank: RM600,000/
RM900,000 : 66,67%- Nisbah bagi hasil En.Ahmad: