Islamic Finance
Munahadah
December 30, 2021
Finance
Z-Spread
December 30, 2021

A partnership (sharaka/ sharika) in which one party (land owner) presents a treeless piece of land to another (planter) in order to plant trees on it in return for a common defined share of the trees, fruits and land. In essence, munasaba is a form of mudaraba that is confined to plantation activities.

Munasaba, or mugharasa also, is an Arabic term (مناصبة) that translates as plantation.

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