8/4/2019 HALAL INVESTING DEAL

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Dr]e/.INTERN;TIONAL

Let's Make a Flalal DealA guide to the financial world's Islamic advisers

. . . THANKso rHE suncB n MiddleEast il wealth,

Islam-friendly anking s one of the fastest-growing reas f finance,

expectedo reach$r trillion by zoo9.To help deals roceed

smoothly,blue-chip irms arehiringclerics or advice

on Shaiah,or slamicaw.The costof retaining scholar ersedn

finance ndancientjurisprudence:zopooto $4o,ooo year.

Hussain : Muhammad

Hamid Ilassan : Taqi UsmaniUnited. Arab Emirates : PaF;i,stan

Yusuf

Talal DelorenzoUnitedStates

A T T E N D E D

Cornell UniversityA D V I S E S

DowJones,

Shariah Capital

A MassarcInnelts-born

convert to Islam,

Delorenzo works

closelywith Shariah

Capital, a tech and

consulting group

based in Comrecticut.

One recent project:

an Islamic trading

platfonn for hedge

funds that mimics

short sales. t relies on

an arboon, a transac-

tion involving a down

payment, to ;rddress

the Koran's prohibition

against. selling what

you don t own. Hedge

fund CIRT Capital

has signed up;

Barclays Capital rvill

process rades.

Mohamed

Al i ElgariSaudi Arabia

A T T E N D E D

University

of California

A D V I S E S

A.I.G. Takatul. HSBC

Amanah, Citi IslamicInvestment Bank

Elgari, perhaps

the most renowned

Islamic-finance

scholar in Saudi

Arabia, has advised

on large infrastruc-

ture projects in the

kingdom, including

$1 billion in Islamic

financing for Al Waha

Petrochemical Co .

last fall. Flush with

oil revenue, the Saudi

government plans to

use Islamic financing

to pay fbr construction

projects during the

next decade.

A T T E N D E D

Al Azhar University

A D V I S E S

DeutscheBank,HSBC Amanah

As chairman of Dubai

Islamic Bank's Shariair

board, Hassan has

signed offon some of

the largest szlcaftgor

Isla"rnic bonds, ever

issued, including a

$3.5 billion Dubai

Ports offering in 2O06.

This summer, Hassan

vetted an instrument

structured by Deutsche

Bank that pegs returns

on halal investments to

\l-estem hedge funds.

In an open letter to

the Islamic financiai

communifi cleric

Delorenzo criticized

the vehicle as counter

to Shariah.

A D V I S E S

HSBCAmanah,Guidance

Financial Group

Usmani, a retired

justice from Pakistan's

supreme court, ,advises a dozen ,

financial institutions

worldwide, including :Dow Jones, which :helped kick-start :

the Islamic finance I

movement in 1999 iwith its Islamic :

Malket Indexes. The Iwolld index incirrdes 1Shariah-compliant t-

./\companle,j slJcn as

/ajltrCtsco Systerns,

",1D*og$cQil,- f ,

Microsoft, fizer,'and.Procter&Gamble. ;

A - - / l

Yaquby,along with

Delorenzo, advisedLebanon-basednvest-ment bank BSEC ast

summer n the firstsukuk originating inthe U.S.: n the deallast July,Houston's

East CameronPartners

raised$166millionto help {'undoil andgasexploration n

the Gulf of Mexico.

With U.S. nvestors

participating, thetransaction vas he

first Islamicbondrated

by Standard& Poor's.(I t received CCC+.)

-CLANCY NOLAN

izam YaqubyBahrain

.i Fl-r\lrdl ?

1FE\ lf- r - i . - tr

i l t n

t l r r tr ' F f l t

f

N

A T T E N D E D A T T E N D E D

Darul Uloom Karachi McGill UniversitvA D V I S E S

HSBC Amanah,

DowJones,

A.I.G. Takaful

M.VRABAHA Terms of InvestmentMurabaha, or cost-plus financ-ing, replaces interest with a flatfee that is agreed upon by both

buyer and seller. t is used n-stead of a traditional mortgage.

A lexicon f Islamicfinanee

The chargingof interest-orriba-inany form,regardlessofthe

Shariah, the Islamic legal codedrawn from the Koran and sayingsof the Prophet Muhammad, ad-vises on everything from dietary

law to

o,.tl&ffi##:f:

rate, is forbidden by the Koran; it is con-sidered profiting from those in need.

5 4 C o r : d 6 N a s t P o r l f o l i o . N o v e m b e r . o /

Takaful systems-an insurance alterna-tive-are structured as pools of moneyil which lossesare evenly distributed.

A sukult involves creating a legalentiQr around a specific asset, likea building, that createsreturns anddistributes payments similar to thosed n n [7? 17fl ]2 of 'aWestern-stvle>(Zt\ W l,K bond,. c:.\:

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