what is the difference between mudarabah and musharakah 
musharakah is a type of joint partnership in which all partners participate in both the investment and the profits profits are shared proportionately based on the size of each partner s investment mudarabah is another type of islamic financing structure in which one partner provides the capital investment and the other provides labor or expertise profits are then shared according to a ratio that has been agreed on in advance the bottom linemusharakah is a type of joint financial partnership in islamic finance under islamic law profits from interested are not permitted mucharakah creates a structure in which all parties share in profits and losses if there is a default both lender and buyer receive a share of the proceeds from the sale of the property based on their investment in the partnership there are different types of musharakah which can be used in transactions ranging from real estate to financing a large purchase the arrangement can be temporary or permanent a permanent musharakah has no specific end date and continues until the involved parties decide to dissolve it 