The Financial Performance of Aqad Shirkah: A case study of financial and non-financial institutions

• . Damanhur Faculty of Business and Economics, Universitas Malikussaleh, 24315 Bukit Indah, Kota Lhokseumawe, Aceh, Indonesia
• Jumadil Saputra School of Social and Economic Development, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Terengganu, Malaysia
• . Falahuddin Faculty of Business and Economics, Universitas Malikussaleh, 24315 Bukit Indah, Kota Lhokseumawe, Aceh, Indonesia

Palabras clave: Aqad Shirkah (Joint Venture), Financial and Non-Financial Institutions, Financial Performance.

Resumen

There is a recognized opportunity to generate profit from the intermediation between savers and investors or lenders and borrowers. This led to the growth of the conventional financial system. In contrast, Islamic institutions that fund business activities must comply with the Shariah. This study investigates the financial performance of the aqad Shirkah (joint venture). The result shows that the financial performance is categorized as very healthy. In contrast, BCA Commercial was unhealthy. It indicates that the Aqad Shirkah is more profitable compared to other financial systems.