Partnership operations means two or more parties draw a contract to work together by the capital they contribute in condition of dividing the accruing profit between them. BBL offers/applies two modes of partnership:
1. Permanent Partnership/Musharakah Daa’emah
This mode is applied in the contribution of BBL with its clients to equal or unequal ratio of capital to establish a new project or participate in already established one whereby both participants own share in capital permanently and deserve their respective share of profit. BBL uses this mode of financing in various types of projects.
2. Decreasing Partnership/ Musharakah Mutanaqessa
This mode differs from permanent partnership only in continuity. BBL in this mode has all rights and obligations of the ordinary partner. However, the bank from the very beginning does not intend to stay in and continue the partnership up to the liquidation of the company. Instead, BBL gives the other partner the right to take its place in the ownership of the project and agrees to assign its share in the partnership to the Client/Partner for full repayment at one and the same time of gradual reimbursement according to pre-agreed upon conditions.
This mode is suitable for financing of industrial establishments, farms, hospitals, and every project capable of generating regular income.