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A guide to key resources: Islamic finance
Practical Law UK Practice Note Overview 3-500-6260 (Approx. 6 pages)
A guide to key resources: Islamic finance
by Practical Law Finance
| Maintained • England, Wales |
A guide to Practical Law Finance's Islamic finance resources.
Islamic finance overview
- For an introduction to the basic principles of Islamic law (or Sharia) that affect finance transactions and an overview of the differences between Sharia and conventional finance, see Practice note, Islamic finance: UK law overview.
- For a description of the main Sharia-compliant transaction structures together with an explanation of how they are used in practice (giving a brief outline of some of the documents used), see Practice note, Islamic finance: Transaction structures
- For an analysis of how the English courts will interpret requirements to act in accordance with the Sharia, see Article, Sharia and the English courts.
Islamic capital markets
Sukuk (singular sakk) are financial instruments, such as certificates, which represent an undivided ownership share in an underlying asset or interest held by the issuer. This distinguishes them from both conventional bonds (which represent debt obligations of the issuer) and conventional equities (which represent ownership interests in the issuer itself). The basic principle is that an ownership share in the underlying asset entitles the sakk holder to a proportionate share of the returns generated by the asset. The overall economic effect is similar to a conventional bond.
- For an introduction to sukuk see, Practice note, Sukuk.
Islamic finance lending
Sharia compliant working capital (including syndicated loans)
For a description of Sharia compliant working capital provided in a bilateral facility, see Article, Sharia compliant working capital facility
For a description of Sharia compliant syndicated loans, see Article, Sharia compliant syndicated financing Mudaraba
Sharia compliant guarantees
For a description of Sharia compliant guarantees, see Article, Sharia Compliant Guarantees
Islamic trade finance
For a description of Sharia compliant trade finance, see Article, Sharia Compliant Letter of Credit
Islamic real estate finance
For an overview of the key issues surrounding Sharia compliant financing of commercial real estate, considering both asset based and asset backed structures and how best to combine conventional and Sharia compliant financing, see Practice note, Sharia compliant financing of commercial real estate
Islamic ESG finance
For an overview of how Islamic finance is adopting ESG standards to produce hybrid Sharia-compliant ESG products, in particular Green Sukuk, see ESG finance and Islamic finance.
Islamic project finance
For an overview of Islamic project finance from an international perspective, see Article, Islamic Project Finance.
Islamic derivatives
For an introduction to some of the issues surrounding the development of Islamic derivatives and an outline of some of the key structures, see Article, Islamic derivatives.
Islamic microfinance
For an overview of the impact of Islamic finance on microfinance see Practice note, International investment in microfinance: overview: Islamic finance.
Tax
Sharia-compliant transactions tax
For an introduction to the UK's tax treatment of Islamic finance or, as it is referred to in UK tax legislation, "alternative finance", see PLC Tax, Practice note, Sharia-compliant transactions: tax.
Sharia-compliant transactions VAT
For a consideration of the UK VAT treatment of certain sharia-compliant financing structures, see PLC Tax, Practice note, Sharia-compliant transactions: VAT.
Links to Practical Law's resources on Islamic finance
Practical Law Finance resources on Islamic finance
Links to Practical Law Finance resources on Islamic finance:
- Practice notes.
- Standard documents and drafting notes.
- Checklists.
- Legal updates.
- Articles.
Useful links
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