Derivatives

Anticipatory Hedge

August 18, 2021
Derivatives

Rho

August 18, 2021

Share

Arabic (مزارعة) for sharecropping; a partnership (sharikah/ musharakah) in crops whereby one party (land owner) presents a piece of land to another (agricultural worker/ muzare’) for the latter to cultivate and maintain in return for a common defined share in the crop.

In essence, muzara’ah is a form of mudarabah which is confined to agricultural activities, specifically sharecropping.

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