Diminishing Musharka

Diminishing Musharaka is a form of partnership in which the Islamic Bank and the customer participate in the joint ownership of a property or equipment. The share of the financier is further divided into a number of units and the client purchases the units of the share of the Islamic Bank periodically, thus increasing his own share till all the units of the Islamic Bank are purchased by the customer, making him the sole owner of the property or the equipment.