Filter by Categories
Accounting
Banking

Islamic Finance




What is the Difference Between Muzara’a and Mukhabara?


Muzara’a (مزارعة) is a cultivation (plantation) partnership between a land owner and a farmer in which the former provides a piece of land and the latter contributes efforts and expertise to grow a crop therein. The total yield (ghalla) of the land is divided between the two partners according to specific percentages.

On the other hand, mukhabara (مخابرة) is a type of sharecropping whereby a plot of land is rented for part of its yield (ghalla). It is a type of agreement in which the worker (farmer) supplies seeds, in addition to his labor and expertise, and the landlord provides, through lease (ijara), the plot of land to be ploughed in preparation for sowing seed and growing crops. Mukhabara may also involve cultivation of a sowed land in return for a specific portion of its produce. The rent is paid in kind from the land’s produce.

In short, muzara’a is a form of partnership (musharaka) between capital (in the form of a plot of land) and labor in which total yield is divided between the two partners, while mukhabara is a type of ijarah in which rental (ujra) is paid out of the lease land’s yield.



Questions and Answers
This section contains quite a vast collection of easy-to-understand explanatory manuals, practical guides, and best practices how-tos covering the main themes of this ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments