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Uses of Musharakah and Mudarabah

Musharakah and Mudarabah modes of financing can be used in the following areas:

Asset Side Financing


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  • Short/medium/long - term financing
  • Project financing
  • Small & medium enterprises setup financing
  • Large enterprise financing
  • Import financing
  • Import bills drawn under import letters of credit
  • Inland bills drawn under inland letters of credit
  • Bridge financing
  • LC without margin (for Mudarba)
  • LC with margin (for Musharakah)
  • Export financing (Pre-shipment financing)
  • Working capital Financing
  • Running accounts financing / short term advances

Liability Side Financing

  • For current/ saving/mahana amdani/ investment ccounts (deposit giving Profit based on Musharkah/Mudarbah – with predetermined ratio )
  • Inter- Bank lending / borrowing
  • Term Finance Certificates & Certificate of Investment
  • T-Bill and Federal Investment Bonds / Debenture.
  • Securitization for large projects (based on Musharkah)
  • Certificate of Investment based on Murabahah (Eg: Al Meezan Riba Free )
  • Islamic Musharakah bonds (based on projects requiring large amounts – profit based on the return from the project)  

Source: Dr. Muhammad Imran Ashraf Usmani, Meezan Bank’s Guide to Islamic Banking.