Under the terms of the musharakah mutanaqisah diminishing partnership. contract, the client buys a number of specified units every month out of the shares of the Islamic MFI which automatically decreases the capital ownership of the MFI.

Question

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In a Musharakah Mutanaqisah contract, the client gradually buys out the shares of the property owned by the Islamic financial institution (MFI), thereby reducing the MFI's ownership stake over time. This process involves the client making regular payments, which are partly considered as rental for using the property and partly for purchasing the property's units or shares from the MFI.

Under the Terms of the Musharakah Mutanaqisah Diminishing Partnership