Islamic Finance

Islamic finance is a financial management field that adheres to the principles of Islam, known as Shariah law.

It provides ethical alternatives for real estate transactions, including purchasing, refinancing, and managing Islamic finance-backed securities.

What is Islamic Finance?

Islamic finance is how businesses and individuals raise capital in accordance with Sharia or Islamic law. In Islamic law, to make money from money is forbidden – wealth can only be generated through legitimate trade and investment in assets. Islamic finance forbids riba (interest) and gharar (ambiguity or deception).

Islamic finance also refers to the types of investments that are permissible under Sharia or Islamic law.

Ethical Finance

Islamic finance is a unique form of socially responsible investment.  Investments in industries such as tobacco, alcohol, gambling or arms is strictly prohibited. The finance is monitored by an external Shariah committee and internal compliance officer. It is their duty to act in the best interests of customers and society.

Islamic finance is therefore attractive to anyone looking for an ethical alternative form of finance, not just Muslims.

How can we help?

We have Islamic finance specialists with extensive experience in structuring and dealing with high value, cross jurisdiction and complex real estate finance transactions.

Whether it is purchasing a property, refinancing your existing property or portfolio using Islamic finance, or redeeming / paying off Islamic finance backed security on a property, we offer expert Islamic finance legal advice and will ensure that your financial needs are met.

Islamic Finance in the UK

Islamic finance is one of the fastest growing areas of financial services. The UK is the leading centre for Islamic finance in Western Europe. The current size of the UK Islamic finance market is over 6 billion (USD) which emphasises the importance of seeking Islamic finance legal advice to navigate its complexities.

What areas do we cover?

  • Banking
  • Bonds (Sukuk)
  • Insurance (Takaful)
  • Funds and Asset Management / Investment Platforms
  • Ijarah (leasing)
  • Diminishing Musharaka (partnership)
  • Murabaha (profit)
  • Commodity Murabaha (trading)

Supporting and advising clients in the Middle East

We have been advising Middle Eastern clients for over a decade, particularly those based in Saudi Arabia, Kuwait, Qatar, and the UAE. We provide expert guidance in succession planning, Islamic Finance, and business immigration, helping clients navigate complex legal landscapes.

Our extensive experience includes advising on UK real estate, assisting with acquisitions, disposals, and secured financing for high-value commercial and residential properties, often involving offshore companies.

We specialise in Islamic finance, having facilitated over £35 million in new Islamic Finance lending for Middle Eastern clients in 2024 alone, particularly for property acquisitions secured through Sharia-compliant financing structures. We also provide tailored business immigration solutions to ensure that our clients can successfully expand and relocate their businesses to the UK.

Find out more here.

For advice you can rely on, contact us today

0300 124 0406
enquiries@schofieldsweeney.co.uk

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