The application of new musyarakah model in Islamic banking products

Musyarakah contract is a joint venture contract between two or more parties where the profit is shared according to the agreed profit sharing ratio. The new musyarakah model internalizes this concept and takes into account the investment of two parties using two different rates of profit as well as two profit sharing rates. At present, this model is the only model that uses two profit sharing rates to ensure justice in a joint venture investment. This concept can be extended in other Islamic investment or banking products that will attract more foreign investors who are keen in musyarakah products. Apart from this, it may initiate other researches to develop new products in Islamic banking/financing and investment.