A type of partnership (sharikah/ sharika) which basically involves joint ownership (mulk in Arabic) by two or more persons in a particular property solely for the sake of ownership, rather than contractual agreement. This type of partnership is usually created by ways of inheritance, wills, or other situations where two or more persons come to hold an asset in common. Ownership gives every “partner” the right to share in the returns of underlying property or asset. Sharikat al-mulk may come in two different forms:
- Sharikat ikhtiyar (voluntary or optional sharika).
- Sharikat jabr (involuntary sharika or sharika of necessity).
Sharikat al-mulk is an Arabic term (شركة الملك) that translates as holding partnership.
