Diminishing Partnership
مشاركة متناقصة
Pronunciation: moo-SHAH-rah-kah moo-tah-NAH-ki-sah
A co-ownership arrangement where the buyer gradually purchases the provider's share — a common halal home financing structure.
Definition
See Musharakah Mutanaqisah. A co-ownership arrangement where one partner gradually buys out the other's share over time. A widely used halal home financing structure.
The buyer and financial institution co-purchase the property; the buyer's ownership percentage increases with each payment while the institution's share diminishes. Monthly payments typically include a portion that increases the buyer's equity and a rental payment for the institution's share.
Related Terms
Musharakah Mutanaqisahمشاركة متناقصة
Diminishing partnership — a widely used halal home financing structure.
Musharakahمشاركة
A joint partnership where all parties contribute capital and share profits and losses proportionally.
Ijaraإجارة
A lease or rental agreement — one of the three main halal home financing structures used in Canada
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Diminishing Partnership (مشاركة متناقصة) — A co-ownership arrangement where the buyer gradually purchases the provider's share — a common halal home financing structure. See Musharakah Mutanaqisah. A co-ownership arrangement where one partner gradually buys out the other's share over time.
- A co-ownership arrangement where the buyer gradually purchases the provider's share — a common halal home financing structure.
- Category: Financing Structures
- Related: Musharakah Mutanaqisah, Musharakah, Ijara
- Compare related Shariah-compliant products on HalalWallet
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-07-01
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