Mugharasah (planting partnership)
A partnership in which one party gives bare land to another to plant trees, and they share the trees and fruit.
Mugharasah is an agricultural partnership in which one party provides a treeless piece of land to another, who plants trees on it, on the condition that they share the trees and the fruit in an agreed proportion. AAOIFI's partnership standard defines it next to muzara'ah and musaqat, and its sukuk standard lists mugharasah among the partnerships that investment sukuk may represent. It differs from the other two in that the partners come to share the trees themselves, not only the crop.
Sources
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
Muzara'ah (sharecropping partnership)A partnership in which one party provides land and the other cultivates it, for an agreed share of the crop.Musaqat (irrigation partnership)A partnership in which one party provides fruit trees and the other tends and irrigates them for a share of the fruit.Shirkah (partnership: inan, mufawadah, abdan, wujuh)Partnership in Islamic law, with classical forms based on capital, work or credit and a rule that losses follow capital.SukukCertificates of equal value representing undivided shares in the ownership of assets, usufruct, services or a project.