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Musharakah Mutanaqisah

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by mimi mey on 19 August 2013

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Transcript of Musharakah Mutanaqisah

Contents
Advantages of MM
Musharakah Mutanaqisah
Nurulhidayah Haslim
Shamimi Mohd Ibrahim

It is relatively cheaper or more affordable
mode of finance.
Siti Hawa Misran
DEFINITION
Maybank2u
USIM Fatwa Management System
Kuwait Finance House
Islamic Finance Manual
Shariah compliant financing facility offered for
new and existing corporate and commercial
customers for asset acquisitions and refinancing
such as landed properties, plant and machinery,
vessels and commercial vehicles.
A deminishing ‘musyarakah’
which is a co-ownership
agreement between that Islamic Bank
and customer.
Another term for musyarakah mutanaqisah is
musyarakah muntahiyah bi tamlik. It is a form of partnership contract whereby the financier allows
his partner to buy assets in one payment or in
installments based on terms agreed by both parties.
A concept in which the property is co-owned by you and the Bank,with the ultimate goal of you eventually having sole ownership.
Definition of MM
Pillars
Eligibility of MM
Procedures & Stages
Advantages & Disadvantages
Conditions in MM
Examples of Application
Procedure
3 stages in MM
Agreement between the bank
and the customer. E.g. at 90:10

The objective of the partnership
is to acquire and own an asset
Musharakah
The customer rents the agreed
property
For completed house:
pays the rental payment
For house under construction:
pays ijarah mawsufah fi dhimmah
Ijarah
Customer will continue to
buy the units representing
the bank’s share gradually
until the house is fully
owned by him
Sale
Musharakah
vs
musharakah
mutanaqisah
vs
originally is a tool for business operation & investment
Musharakah
as a financing instrument
Musharakah Mutanaqisah
The financing and the installment payment
can be adjusted periodically.
Riba’ can be avoided totally.
It is in line with Maqasid al-Shari’ah.
Disadvantages of MM
Keeping track of the payments changes may be
difficult for the banks.
It is less attractive for the banks because MM
brings lower profits to the bank.
Legal amendment may be needed especially
with regards to the tax of the property
ADVANTAGES & DISADVANTAGES
The end..
Jazakallahu
Khairan!
Pillars
Shuraka'
(Shareholders)
Ra'sulmal
(Capital)
Mashru'
(Business Venture)
Ribh
(predetermined profit allocation)
Sighah
(offer and acceptance)
Implementation
1. The client and the bank make partnership
between them to get the capital to buy the
property.

2. The customer and the bank become the owner
of the property based on the ratio of payment
in purchasing the property.

3. The bank leases its share to the client and
takes rentals monthly for a predetermined
period. The client buys the bank‟s share step
by step.

4. Finally, the bank‟s share comes to an end and
the client gets the full ownership of the
property.
Maybank Islamic Berhad

RHB Islamic

Citibank Malaysia

Kuwait Finance House
What happen if..
Property is not completed
Customer moves out
Properety taken over by government
Property is not completed
The contract is terminated and all the payments made are returned to the customer
Customer moves out
Customers will get the remaining shares of the Bank and then he sells the property to third parties
or
Properties are sold to third parties and the proceeds are divided between
the Bank and the Customer based on the percentage of ownership
Property is taken over by the government
The Customer and the Bank's share the profits or losses from the acquisition of the properties based on the percentage of ownership
or
Customers promise to buy the outstanding shares of the Bank before the acquisition of the properties.Therefore, the Customers will have to bear all the losses and the Bank will recover its capital.
Musharakah Mutanaqisah and Bay' Bithaman Ajil are DIFFERENT!
MM
BBA
1. Joint ownership
2. The bank as partner in purchasing the property. Client
pays installments to buy the bank's share on the property.
After full payment, property belongs 100% to client.
3. More flexible to redeem earlier, compared to BBA
1. Debt-type financing
2. The bank purchases the house with lump sum price and
immediately sells it back to the client with the cost plus profit
3. Need to compute rebates for early redemption
Wahbah Zuhaili dalam kitab Al-Muamalah Al-Maliyah AlMuasirah, hal. 436-437:


ﻲﻓِ ﺔﹲﻋﻭﺮﺸ ﻣ ﺔﹸﻛﹶﺎﺭﺸﻤ ﺍﻟﹾ ﻩِﻫﺬِ ﺍﻟـﺸ ﺎﺩِﻤﺘِﻋ ﻻِ ﺔِﻌﻳﺮِ ﻫـ ﻹِﺎﹾﻛﹶ-ﺎ ﺟـ ﺓِﺎﺭ
_ﻚِﻴﻠِﻤﺎﻟﺘ ﺑِ ﺔِﻴﻬِﺘﻨﻤﺍﻟﹾ ﻠﹶ ﻋ ﻰ ﻭ ـ ﺒِ ﻳ ﻥﹾﺄﹶ ﺑِ ﻪِﻜِﻳﺮِﺸ ﻟِ ﻚِﻨﺒ ﺍﻟﹾ ﻦ ﻣِ ﺪٍﻋ ﻴ ﻊ ﻟﹶـ


ﻪ“Musyarakah mutanaqishah ini dibenarkan dalam syariah, karena –sebagaimana Ijarah Muntahiyah bi-al-Tamlik—bersandar pada janji dari Bank kepada mitra (nasabah)-nya bahwa Bank akan menjual kepada mitra porsi kepemilikannya dalam Syirkah apabila mitra telah membayar kepada Bank harga porsi Bank tersebut
ﻲ ﻓِﻪﺘﺼﺣِ ﺍﻟﺸ ﺍ ﺳﺫﹶ ﺇِﺔِﻛﹶﺮ ﺩﺪ ﻟﹶﻪ ﻗِﻴﻤﺘﻬ
who is eligible ?
individual
non-individual
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