SS 50 – Irrigation Partnership (Musaqat)

This Standard aims to explain the Shari’ah rules and requirements for Irrigation Partnership (Musaqat) and its applications in the activities of Islamic financial Institutions.

The word (Institution /Institutions) is used here to refer, in short, to Islamic financial institutions including Islamic Banks.

Scope of the Standard

This Standard covers the Shari’ah rules and requirements for Irrigation Partnership (Musaqat) and its applications in the activities of Islamic financial institutions. It does not cover other forms of agricultural part- nership as they have separate Shari’ah standards dedicated to them. 2. Definition of Irrigation Partnership (Musaqat) A contract between the owner of an orchard or its usufruct and a worker (irrigator) agreeing to share the produce according to specific ratios stipulated at the time of contract. 3. Permissibility and Description of the Contract Irrigation Partnership (Musaqat) is a permissible contract that becomes binding on commencement of the work or if mutually agreed between the two parties not to terminate the contract before its expiry. 4. Elements of Irrigation Partnership