Jurists define musharakah as a contractual agreement between two partners with regard to both capital and profit.

Musharakah is one of the most important models of Islamic investment practiced by IIAB. The Bank takes an active role with its partner in studying and deliberating over the intended project from technical, Shari'ah, and social aspects. The Bank also allows the client the chance to take full ownership of the project, by purchasing shares in installments.