This fatwa acknowledges the need for business investment, often via musyarakah financing, viz. financing based on joint ventures between two or more parties for a certain business, where each party provides a financial contribution on the condition that profit and risk are shared equally, pursuant to the agreement in place. The fatwa also acknowledges that shari'a financial institutions are already implementing musyarakah financing agreements, and that the Board believes a set of guidelines is necessary to ensure that such agreements are implemented in a shari'a-compliant manner.
More specifically, among other requirements, the fatwa dictates that statements of consent and accedence must be made by all parties to show their willingness to be a party to an agreement, ensuring offer and acceptance is explicit, and that it is carried out at the time the agreement is executed. Moreover, all parties must have legal standing (cakap hukum), they must participate and contribute, however, their contributions need not be of the same magnitude.