Islamic Law Finance
GSC’s Islamic finance department can advise on a wide range of Sharia compliant products, including:
- Murabaha contracts (cost-plus financing)
- Musharaka (partnership agreements)
- Ijara (leasing arrangements)
- Wakala (agency contracts)
- Tawarruq (cash flow financing)
- Salam (advance payment sale)
- Sukuk (Sharia compliant bond)
- Takaful (insurance contract).
Our dedicated team can advise individuals, companies, banks and sponsors on all aspects of Islamic compliant financing.
Islamic finance products are available to Muslims and non-Muslims alike. In fact, many Islamic finance institutions report having more non-Muslim customers than Muslims. The increased popularity in Islamic finance institutions can be attributed to the following benefits of Islamic finance:
- Ethical banking – Islamic finance institutions cannot invest in harmful products or practices such as charging interest, gambling or the consumption of alcohol or tobacco.
- Encouraging financial justice – Islamic finance institutions share the risks and the rewards with their customers through profit and loss sharing which contributes to a more equitable distribution of income and wealth.
- Transparency – Islamic financial institutions are required to operate in a fair and transparent manner, which involves informing customers of the risks and costs associated with the products and services offered.
- Discouraging speculation – Islam prohibits speculation in transactions as this can lead to instability and misallocation of capital. Instead, Islamic finance institutions must focus on deployment of capital to the real economy, to help promote socio-economic justice.
If you would like to discuss Islamic finance products and the options available, please contact Leila Mustafa. We look forward to helping you with your Islamic finance needs.