|A person or a group of persons who want to start
a new business should have at least 3 years of prior business
experience in the business he/she/they want to pursue. It
is recommended that interested entrepreneurs pursue nationally
recognized name brand service facilities. For example gas
& service stations (EXXONMOBILE, ARCO, CITGO), KFC Restaurants
(LARIBA.com financed KFC stores in California that offer Halal
Zabiha Kentucky Fried Chicken), medical and dental facilities.
The model used is a Joint Venture (musharaka) model. Here the
business owner enters an agreement with the Islamic Financial
company to buy the business according to a certain ownership distribution.
The operator agrees to operate the business for a fee. The profit
is distributed between the two entities according to an agreed
The operator may include in the agreement his/her right to purchase
the business after a certain period and according to a specific
The model used is same as that above in item number one. Here
the operator opts to buy back the shares of the company back at
cost over a period.
The lease rate of such a business is evaluated professionally
by both parties. They agree to the monthly lease rate.
The monthly payment is calculated based on the same principles
used in the Lease-To-Purchase (LTP) agreement explained in Home
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