What is diminishing Musharaka financing that ends in ownership? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

What is diminishing Musharaka financing that ends in ownership?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

It is a tool for financing companies or large properties. The bank and the customer jointly buy an asset or a project, each according to their share.

The project generates profits, and the customer allocates part of their share of those profits to buying the bank's share gradually, until ownership of the asset or the project passes in full to the customer and the bank's partnership comes to an end.

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