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Exam preparationPaidIslamic banking

Partnerships and Profit Sharing

Musharakah, modern companies, mudarabah, investment accounts and protection of capital

Intermediate · 9 hours · 17 lessons · Language: English and Arabic

USD 5USD 14

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ifSPACE provides independent preparation courses. ifSPACE is not AAOIFI, is not an AAOIFI-authorized training provider, and completing a preparation course does not confer any AAOIFI qualification. AAOIFI examinations are taken separately with AAOIFI.

Partnership contracts express the risk-sharing ideal of Islamic finance. This course explains the Shari'ah standards on sharikah (musharakah) and modern corporations, diminishing musharakah, musaqat, mudarabah, the distribution of profit in mudarabah-based investment accounts, the rules for calculating profit, and the protection of capital and investments.

The course covers the partnership section of Part B of the AAOIFI CPSS syllabus. Each module has a reading, slides, study notes and a practice quiz with worked cases. The course ends with a final exam.

This course is independent educational material written by ifSPACE in its own words. It does not reproduce AAOIFI texts, is not affiliated with AAOIFI and is not a fatwa.

What you will learn

  • Explain the types of partnership and how profit and loss must be shared
  • Apply the Shari'ah rules to shares and modern companies
  • Structure diminishing musharakah and musaqat correctly
  • Apply the rules of mudarabah and calculate the distribution of profit in investment accounts
  • Evaluate methods of protecting capital without guarantees from the manager

Syllabus

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  1. 1.Sharikah and modern corporations

    • Welcome to the courseFree preview1 min
    • Partnership contracts and companies (SS 12)Free preview30 min
    • Module 1 presentation15 min
    • Module 1 practice quiz15 min

  2. 2.Diminishing musharakah and musaqat

    • Partnerships that end in ownership, and irrigation partnerships (SS 12 and SS 50)30 min
    • Module 2 presentation15 min
    • Module 2 practice quiz15 min

  3. 3.Mudarabah

    • Capital from one side, work from the other (SS 13)30 min
    • Module 3 presentation15 min
    • Module 3 practice quiz15 min

  4. 4.Investment accounts and the calculation of profit

    • Distributing profit in mudarabah-based accounts (SS 40 and SS 47)30 min
    • Module 4 presentation15 min
    • Module 4 practice quiz15 min

  5. 5.Protection of capital and investments

    • Protecting investors without guaranteeing returns (SS 45)30 min
    • Module 5 presentation15 min
    • Module 5 practice quiz15 min
    • Course summary and next steps10 min