Key elements of bai salam As discussed in more detail in the Practice Note: The structure and required elements of a bai salam transaction, in particular with regard to...
Murabaha agreements may be employed to provide working capital or acquisition financing. A murabaha arrangement entered into for such purposes is known as a commodities...
Some commentators have noted that the interplay of form and substance for UK tax purposes parallels the relationship of form and substance for Shari’ah purposes. From a...
In the Name of Allah, the Most Beneficent, the Most Merciful The evolution of Islamic finance The requirement for financing is an essential requirement of business and...
Murabaha contracts typically provide that the laws of England and Wales will govern agreements performed in the UK. A number of factors favour this practice: • most of...
This Practice Note provides an overview of the differences between the Sukuk markets in the Middle East and Far East, including recent trends and structures used. For...
A basic murabaha and a commodity murabaha arrangement can both be structured to facilitate a single transaction, or to operate on a revolving basis so that several...
Introduction—transactional Islamic finance There are a number of different opinions and principles iterated by Shari’ah board members when interpreting Shari’ah law in...
A Shari’ah compliant leasing agreement takes the form of an ijarah which can either be akin to an operating lease, whereby the asset is returned to the lessor at the end...
Key features • A Customer does not obtain a physical asset for their own use, but to engage in a series of purchase and sales transactions that result in them obtaining...
Key features • This is a form of investment management. Two parties form a commercial partnership with the Islamic Financial Institution (IFI) or group of investors...
Key features • Murabaha is one of the most controversial, but commonly used Islamic finance techniques. It is used particularly in the Middle East for short and...
Key features • This is a form of commercial partnership where two or more parties both provide capital (and real assets) as well as time and effort, commonly used in...
Key features • This structure is also known as a forward sale agreement and involves the Islamic Financial Institution (IFI) purchasing goods on behalf of the Customer....
Key features • This is the equivalent of leasing in an Islamic finance structure and is a contract under which the owner (lessor) purchases an asset and then transfers...
Key features • This is a form of project finance used to fund the manufacturing of goods or assets that are not yet in existence. It is most commonly used for the...
This Practice Note provides an overview of the key considerations that an Obligor should take into account in selecting an appropriate structure for the issuance of...
Shari’a-compliant financing arrangements (also known as Islamic financing arrangements) can take a number of forms. The UK has introduced specific provisions known as the...
Takaful is a means of providing risk-cover conducted in line with the principles of Islam. To understand the mechanics of takaful and its documentation, it is critical to...
Like their conventional counterparts, takaful operators (ie Islamic insurance providers) have a number of ways to distribute their Shari’ah compliant life insurance...
Takaful is the provision of risk-cover conducted in line with the principles of Islamic law (Shari’ah). It offers a unique and important alternative to conventional...
Introduction to musharaka—a profit and loss sharing instrument of Islamic finance A fundamental principle of Islamic finance is that of ‘no profit without risk’, ie the...
This Practice Note sets out the key differences between conventional bonds and sukuk, or trust certificates as they are otherwise known, (the Sukuk). The Practice Note...
Terminology Given the historic origins of Shari'ah principles and jurisprudence in general and those underlying the development of bai salam, much of the terminology...
Murabaha is both one of the most widely used and controversial Islamic finance techniques. Murabaha (often referred to as ‘cost plus profit financing’) involves a minimum...
Introduction—a pure theory, a dead practice? For a number of years, Islamic financing has been offered by both Islamic financial institutions (IFIs), as well as...
BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a...
When the murabaha structure was being developed for use in the UK, practitioners understood that the structure's novelty would produce a degree of uncertainty. As a...