Practice Area
Islamic Finance
Legal advisory on Sharia-compliant financing structures, transactions and investment arrangements, combining contractual structuring with an understanding of Sharia principles, regulatory requirements and commercial objectives.
Overview
We advise businesses, financial institutions, investors and other stakeholders on the legal structuring and documentation of Sharia-compliant financing and investment transactions. This includes the development and review of financing structures, contractual arrangements and transaction documents across a range of Islamic finance products and commercial settings.
Experience spans Murabaha, Ijara and other Sharia-compliant financing structures, Islamic investment arrangements and the legal aspects of transactions involving financial institutions, businesses and investors. It also extends to emerging financing models where Sharia principles, regulatory requirements and new commercial structures intersect.
Working alongside Sharia advisers and other transaction professionals where required, we translate the intended Sharia and commercial structure into clear and workable contractual arrangements, identify legal and regulatory risks and support transactions from structuring through documentation and implementation.
Key Areas of Work
Islamic Financing Structuring
Sharia-Compliant Syndication Arrangements
Debt & Asset Securitisation
Sharia-Compliant Investment Agreements
Sukuk & Sharia-Compliant Capital Markets
Sharia-Compliant Corporate & Project Finance
Sharia-Compliant FinTech & Emerging Financing Models
Sharia & Regulatory Compliance
Selected Experience
Experience across Sharia-compliant financing and investment
A selection of matters and projects reflecting the experience of the Lawarche legal team, including work undertaken by our consultants in senior roles prior to joining the firm.
Sharia-Compliant Hotel Financing — Saudi Arabia
A senior member of our team advised on the structuring of Sharia-compliant financing for the development of a hotel chain in Makkah and Madinah for a Bahraini investment company. The work addressed the applicable Sharia principles and Saudi regulatory requirements.
Syndicated Murabaha Financing — Saudi Arabia
Advised on the legal review of a syndicated Murabaha financing agreement for Saudi Arabian Airlines, with a financing value equivalent to approximately £1.4 billion, including its compliance with applicable Sharia requirements.
Debt Conversion & Securitisation
Advised on Sharia-compliant structures for the conversion of debt into equity interests in companies, addressing both regulatory and Sharia requirements. We also structured financing transactions with an aggregate value equivalent to approximately £100 million involving the conversion of real estate assets into Sharia-compliant financing instruments.
Sharia-Compliant Investment Agreements — GCC
Structured Sharia-compliant investment arrangements across several GCC jurisdictions with aggregate values equivalent to approximately £20 million. Our work included assessing the parties’ commercial requirements and objectives, identifying appropriate Sharia-compliant investment models, facilitating alignment between the parties and preparing the required agreements and transaction documentation.
Sharia-Compliant Corporate & Project Finance
Advised on a range of corporate and project financing matters involving the legal and Sharia aspects of financing fixed and non-fixed assets and securing Sharia-compliant credit facilities for contracting projects with an aggregate value equivalent to approximately £200 million.
Sharia-Compliant FinTech Financing — Saudi Arabia
Advised on the legal structuring and contractual framework for Lendo KSA, including the development of the legal relationships underpinning its Sharia-compliant FinTech financing model and the relationships between the platform, financing participants and other stakeholders.
Discuss Your Islamic Finance Matter
Speak with our team about Sharia-compliant financing structures, transactions, investment arrangements and other complex Islamic finance matters.