Islamic Finance

Mugharasa Sukuk

August 17, 2021
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A type of partnership (musharaka) in which one party (a land owner) presents a treeless piece of land to another (a planter) in order for the latter to plant trees on it in return for a common defined share of the trees, fruits and land. In essence, mugharasa is a form of mudaraba which is confined to plantation activities.

Mugharasa, or munasaba also, is an Arabic term (مغارسة) that denotes plantation.

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