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.
Musaqat is an irrigation partnership: one party provides fruit-bearing trees or plants and the other works on watering and tending them in return for an agreed common share of the fruit. AAOIFI defines it in its partnership standard and has a separate standard dedicated to it, and its sukuk standard allows certificates that represent musaqat to be traded once the activity begins, where the holders own the land. Like muzara'ah, it shares output rather than paying a fixed amount, so the harvest and its division are the facts that matter.
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This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.