Islamic finance: UK law overview

Resource type: Practice note: overview

Status: Maintained

Jurisdictions: International, United Kingdom

This note gives an introduction to the basic principles of Islamic law (or Sharia) that affect finance transactions. It describes the main Sharia-compliant transaction structures and explains how they are used in practice. It considers the current challenges for the Islamic finance market and its likely future development.

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Resource information

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Resource ID: 3-366-1996
Products: PLC Cross-border, PLC Finance, PLC Finance, PLC Law Department
This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.

Cross-border chapters

Related content

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Topics

Cross-border: FinanceCross-border: Finance (http://incentives.practicallaw.com/topic7-200-1612)
Islamic FinanceIslamic Finance (http://incentives.practicallaw.com/topic3-201-5201)

Practice notes

Islamic derivatives Islamic derivatives (http://www.practicallaw.com/topic8-501-6191)
Islamic finance: standard documents Islamic finance: standard documents (http://www.practicallaw.com/topic6-500-6292)
Sharia-compliant transactions: tax Sharia-compliant transactions: tax (http://www.practicallaw.com/topic4-201-9755)

Glossary

Arbun Arbun (http://www.practicallaw.com/topic2-501-7099)
Bai salam (forward financing) Bai salam (forward financing) (http://www.practicallaw.com/topic7-367-4015)
Ibaha Ibaha (http://www.practicallaw.com/topic6-501-7097)
Ijara Ijara (http://www.practicallaw.com/topic3-203-8716)
Ijara sukuk Ijara sukuk (http://www.practicallaw.com/topic7-502-0872)
Ijara wa-iktina (finance lease) Ijara wa-iktina (finance lease) (http://www.practicallaw.com/topic9-367-2973)
Istisna'a (construction or manufacturing financing) Istisna'a (construction or manufacturing financing) (http://www.practicallaw.com/topic1-203-8717)
Maisir (speculation) Maisir (speculation) (http://www.practicallaw.com/topic7-503-2846)
Maslaha (public good) Maslaha (public good) (http://www.practicallaw.com/topic1-501-7090)
Mudaraba (profit sharing) Mudaraba (profit sharing) (http://www.practicallaw.com/topic3-367-3999)
Murabaha (cost-plus financing) Murabaha (cost-plus financing) (http://www.practicallaw.com/topic9-203-8718)
Musharaka (equity and venture capital financing) Musharaka (equity and venture capital financing) (http://www.practicallaw.com/topic0-367-4014)
Musharaka sukuk Musharaka sukuk (http://www.practicallaw.com/topic8-502-0876)
Profit rate swap Profit rate swap (http://www.practicallaw.com/topic6-501-7101)
Riba (interest) Riba (interest) (http://www.practicallaw.com/topic0-501-7081)
Salam sukuk Salam sukuk (http://www.practicallaw.com/topic0-502-0880)
Sharia Sharia (http://www.practicallaw.com/topic7-203-8719)
Sukuk Sukuk (http://www.practicallaw.com/topic5-203-8720)
Sukuk al ijara Sukuk al ijara (http://www.practicallaw.com/topic7-501-9982)
Sukuk al mudaraba Sukuk al mudaraba (http://www.practicallaw.com/topic8-501-9986)
Sukuk al murabaha Sukuk al murabaha (http://www.practicallaw.com/topic0-501-9985)
Sukuk al musharaka Sukuk al musharaka (http://www.practicallaw.com/topic6-501-9987)
Sukuk al salam Sukuk al salam (http://www.practicallaw.com/topic4-501-9988)
Sukuk al wakala Sukuk al wakala (http://www.practicallaw.com/topic2-501-9989)
Tawarruq (Reverse Murabaha) Tawarruq (Reverse Murabaha) (http://www.practicallaw.com/topic5-367-4016)
Wakala Wakala (http://www.practicallaw.com/topic3-502-0020)
Wakala sukuk Wakala sukuk (http://www.practicallaw.com/topic9-502-0885)
Wakil Wakil (http://www.practicallaw.com/topic9-502-0890)

Article: know-how

Equity fundraising in the Gulf markets Equity fundraising in the Gulf markets (http://www.practicallaw.com/topic1-383-7869)

Legal update: archive

Ask the team: Do you have a standard form Murabaha Agreement? Ask the team: Do you have a standard form Murabaha Agreement? (http://www.practicallaw.com/topic6-422-1231)
Recent trends in sukuk Recent trends in sukuk (http://www.practicallaw.com/topic3-382-2739)

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