SiteLock

Shariaa' Financing

MODES OF PARTNERSHIP

....Truly many are the partners (in business) who wrong each other: Not so do those who believe And work deeds of righteousness. Saae 24 The Holy Hadith: I am the third partner to the two partners unless either of them betrays his friend. If either betrays his friend, I quit from betwixt them. Related by Abu Daoud. The Characteristic Traits of Modes of Partnership The partnership operation 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. The most important traits of these operations are: * The participation in capital whether it is an asset, labour or liability. * The partnership in work, management and disposal where the right of ownership and disposal remains to each partners. * The partnership in the results of the operations whether profit or loss. * The continuity in the partnership, usually to long terms. Divisions of the Modes of Partnership Partnership operations embrace all kinds of contract companies which the Islamic Figh divides into three kinds: Labour Company it is a contract in accordance to which two or more parties agree on accepting to do a job (such as trade, construction, etc.) together and to divide the accruing profit among themselves in specific percentage. Character Company It is a contract in accordance to which two or more parties agree on purchasing with their characters and reputation goods and commodities on credit for trading in condition of distributing the accruing profit, or loss among themselves in ratios proportionate to what each one of them bears of the debt guarantee or security. Asset Company It is a contract in accordance to which two or more parties agree on participating in the contribution of capital for investment and the accruing profit shall be divided among themselves in specific percentages agreed upon and they bear losses in ratio proportionate to their (contributions) shares in capital. But, profit may be distributed separate from the debt guarantee borne by each, whereas loss shall be proportional to debt guarantee. In Asset Companies The two partners may be equal in capital and power of disposal, this sort of asset companies is called "Mufawada Company" The two partners may neither be equal in capital nor in power of disposal. In other words, one of the partners has more capital than the other or one partner is responsible for the company and the other is not. This kind is called "Ainan company". It is notable that the rein companies are the most appropriate companies for the business of the Islamic banks. The other kinds of companies rarely suite the nature of business in the Islamic banks. That is because the rein company enables the Islamic bank to contribute in established or proposed projects and to authorize the other partners in all the concerns of investment and the bank contents with the role of general supervision and follow up and the right to intrude when necessary. There are two modes of partnerships which are applied by the Islamic banks. They are: * Permanent Partnership * Decreasing Partnership

News & Events


Tala'al-Badru 'Alayna Festival Sponsored by Al Baraka Bank

View



Takaful visit to albaraka Bank 10-3-2016

View


Al Baraka Bank Sponsoring Mtein Afforestation 20-2-2016

View


Al Baraka Bank Sponsors Afif al-Tibi Winter Festival 31-1-2016

View


Ahmad al-Ghoul Ranks First in the Special Needs Category in Beirut Marathon 25-1-2016

View


Al Baraka Bank Holds a Lunche in Honor of Media preventatives 15-1-2016

View


E-Baraka

Albaraka Network