Shari’ah-Compliant Investment in Real Estate in the United States

Overview of Shari’ah-Compliant Investment, Considerations in Structuring Transactions, Investor Analysis/Diligence, Key Nominate Contracts

Recording of a 90-minute premium CLE webinar with Q&A


Conducted on Thursday, June 4, 2020

Recorded event now available

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Program Materials

This CLE webinar will provide an overview of Shari'ah-compliant investment, an asset-based investment system that is frequently, though imprecisely, known as Islamic finance.

Description

Real estate presents an attractive target asset class for investors seeking to invest in accordance with Shari'ah, the code by which Islamic investors are guided in their investment decisions.

The presenters, experienced in advising Islamic investors and other parties to compliant transactions, will review the tenets which underlie Shari'ah and serve as the basis for the applicable investment structures. They will review several of the forms of contract which are used to implement these investments.

The panelists will discuss the role of Islamic jurists in structuring investments and the diligence typically undertaken to assure compliance with the tenets of Shari'ah, which include the absence of interest-based leverage and non-permitted activities at the investment property.

They will also review in depth the use of an ijara, a form of master lease, in a bifurcated structure by which some compliant investors participate in transactions involving conventional leverage. The presentation will review the matters of concern to the various parties to such investment structures, including the compliant investor, joint venture partners, and third-party lenders.

Listen as our authoritative panel discusses the principles and structuring features of Shari'ah-compliant real estate investment.

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Outline

  1. Overview
    1. What is Islamic finance
    2. The growth of Islamic finance
    3. Key dates
    4. Prime considerations in structuring transactions
    5. Process/content
    6. Investment classes
    7. Investor analysis/diligence
    8. Forms of nominate contracts
    9. Ongoing issues
  2. Key nominate contracts
    1. Ijara
    2. Murabaha
  3. The future

Benefits

The panel will review these and other key issues:

  • What is Islamic finance?
  • Why is real estate investment well suited for Shari'ah-compliant investing?
  • How is a Shari'ah-compliant real estate investment typically structured?
  • What is the role of Islamic jurists in structuring investments?
  • What due diligence should jurists and counsel conduct to assure compliance with the tenets of Shari'ah?
  • What are the main provisions of the key nominate contracts which are used to implement these investments?

Faculty

Ferranti, Kris
Kris Ferranti

Partner
Shearman & Sterling

Mr. Ferranti has extensive experience representing clients in complex commercial real estate transactions, including in...  |  Read More

Newman, Jonathan
Jonathan Y. Newman

Attorney
Shearman & Sterling

Mr. Newman has extensive experience in real estate acquisitions and dispositions, joint venture formations, commercial...  |  Read More

Opar, John
John L. Opar

Partner
Shearman & Sterling

Mr. Opar has extensive experience in all areas of commercial real estate law, including foreign investment in U.S. real...  |  Read More

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