This fatwa defines Musyarakah Mutanaqisah as a financial arrangement whereby one party's ownership of assets or capital is reduced as a result of the other party purchasing them in increments, and an arrangement that comprises a Musyarakah (sale-purchase) agreement. More specifically, a Musyarakah Mutanaqisah agreement involves one party (the shari'a financial institution) promising to sell all their portions (hishshah) incrementally to the other party (customer), who is obligated to purchase them.