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