The document discusses Diminishing Musharakah (DM) as an Islamic financing mode for agricultural projects. DM is a form of Musharakah where a financier and client jointly own an asset, with the client gradually purchasing the financier's shares over time until becoming sole owner. The example shows a client purchasing a tractor through DM by initially contributing 10% equity and paying rent to purchase the bank's remaining 90% share over 3 years, after which the client owns the tractor outright.

13. DIMINISHING MUSHARAKAH 3. Accruing Rentals Share in capital Share in capital Partner Bank 2 4 Sell its share in equity Pays price of the units of bank’s equity

18. ?? 460000 ?? Total 0 0 10125 10000 125 x 1 = 125 36 10000 1 10250 10000 125 x 2 = 250 35 430000 33 14250 10000 125 x 34 = 4250 3 440000 34 14375 10000 125 x 35 = 4375 2 450000 35 14500 10000 125 x 36 = 4500 1 460000 36 0 0 0 0 Remaining balance Remaining units Total payment Value unit purchased Rent End of Month