Participatory Finance
How participatory finance works
A viable business opportunity
We begin by understanding the business, the purpose of the capital, and the opportunity itself.
Capital and capability come together
The agreed structure brings capital from Rehbar together with the business's expertise and day-to-day management.
The venture performs in the real economy
Capital is deployed into a defined trade, project, or business activity — not into a fixed-interest loan.
The outcome is shared
Profit is shared according to the agreed ratio. How any loss is handled is set out clearly in the applicable structure and capital contribution.
What this can make easier
- Mudarabah
One party provides the capital while the other manages the business or venture.
- Musharakah
Both parties contribute capital and participate in a shared venture.