islamic finance and the english court finance and the english... · 2018-03-20 · islamic finance...
TRANSCRIPT
![Page 1: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/1.jpg)
Islamic Finance and the English Court
BACFIat TT International (London)
22 February 2018Dr Scott Morrison
Reader in Commercial Law Oxford Brookes University School of
Law
![Page 2: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/2.jpg)
Thank you
TT International
BACFI• Hussain Khan• Sandra Janes20/03/2018 Islamic Finance and the English Court 2
![Page 3: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/3.jpg)
This lecture
I. Introduction: UK Islamic finance deals
II. The cases
III. Concluding analysis
20/03/2018 Islamic Finance and the English Court 3
![Page 4: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/4.jpg)
I. INTRODUCTION: UK ISLAMIC FINANCE DEALS
20/03/2018 Islamic Finance and the English Court 4
![Page 5: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/5.jpg)
20/03/2018 Islamic Finance and the English Court 5
![Page 6: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/6.jpg)
Other property deals• Chelsea Barracks & Battersea Power Station• Kings Reach Tower (ABC International Bank)• Credit Suisse London HQ• Shell Centre in Southbank development
– joint venture with Canary Wharf• Argos National Distribution Centre (Stratford)• L’Oreal’s UK logistics headquarters• Gatehouse Bank: home finance in Midlands
& Northwest (£700 m)
20/03/2018 Islamic Finance and the English Court 6
![Page 7: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/7.jpg)
UK capital marketLondon Stock Exchange (LSE)• 66 sukuk listed, US$50 b• IDB US$1.25 b – largest by supranational in 2017• 2014 sovereign sukuk (US$200 m)• 2016 sovereign guaranty of Emirates sukuk• 7 shari‘a compliant ETFs• indices: FTSE Sharia Global Index, Shari‘a Top 40 etc
Form of diversification for increasingly wide investor universe
Sources: Financial Times and LSE,‘London Stock Exchange Welcomes in Islamic Development Bank Sukuk Bond – Largest Issuance by a Supranational in 2017) at LSE webpage, 12/4/2017
20/03/2018 Islamic Finance and the English Court 7
![Page 8: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/8.jpg)
UK Islamic banks• Islamic home purchase plans
• musharaka mutanaqisha (diminishing partnership)
• 20 operating in UK, oldest since 2004 (IBB)• 14 Feb 2018: Al-Rayan bank debuts shari‘a
compliant bond backed by UK mortgages
• BoE fund-based shari‘a compliant liquidity reserve
Sources: Financial Times and LSE,‘London Stock Exchange Welcomes in Islamic Development Bank Sukuk Bond – Largest Issuance by a Supranational in 2017) at LSE webpage, 12/4/2017
20/03/2018 Islamic Finance and the English Court 8
![Page 9: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/9.jpg)
Volumes & demographics• US$2 t (2015) global assets, US$3.2 t by
2021• ICD-TR IF Development Report (2017)
• UK: US$4.5 b Islamic banking assets • CityUK (2017)
• Demographics• UK 2.7 m, 4.4 pc (2011 Census)• world: 1.6 b (2010) – 2.2 b (2030) (Pew)
• 1.5 pc growth annual vs .7 pc non-Muslim• youthful: larger share 15-29
20/03/2018 Islamic Finance and the English Court 9
![Page 10: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/10.jpg)
Why the English court?• assets, parties, performance in GCC
• largest share of cross-border deals governed by English law– English contract & trusts law– offshore SPVs (both companies and trusts)– rule of law and judiciary– The City: time zone, exposure, allied professionals (cp
Wall St)– transaction documents drafted by English lawyers
• relevant statutes, regs & reliefs– FAs, PRA/FCA, HMRC, HMT, UKLA rules; AFIB– SDLT relief – Project Blue Limited [2016] CA: Chelsea
Barracks20/03/2018 Islamic Finance and the English Court 10
![Page 11: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/11.jpg)
II. THE CASES
20/03/2018 Islamic Finance and the English Court 11
![Page 12: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/12.jpg)
1) Islamic Investment Company of the Gulf (Bahamas) Ltd v Symphony Gems NV & Ors unreported [2002] All ER 171 (QBD Comm Ct)
2) Beximco Pharmaceuticals Ltd & Ors v Shamil Bank of Bahrain EC [2004] 1 WLR 1784 (CA)
3) The Investment Dar Company KSCC v BlomDevelopment Bank [2009] EWHC 3545 (Ch)
4) Dana Gas PJSC v Dana Gas Sukuk Ltd & Ors [2017] EWHC 1896 (Comm)
5) Golden Belt 1 Sukuk v BNP Paribas [2017] EWHC 3182 (Comm)
20/03/2018 Islamic Finance and the English Court 12
![Page 13: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/13.jpg)
1) ISLAMIC INVESTMENT COMPANY OF THE GULF (BAHAMAS) LTD V SYMPHONY GEMS [2002]20/03/2018 Islamic Finance and the English Court 13
![Page 14: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/14.jpg)
Facts and decision [2002]• murabaha
– in lieu of a loan, two sales contractsi) bank purchases commodity or specific good for customer ii) sells to customer on deferred/instalment terms
– also: used as letter of credit, in title-based finance
• double governing law – Islamic law (recital) & English law
• shari‘a dismissed, English law applied
20/03/2018 Islamic Finance and the English Court 14
![Page 15: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/15.jpg)
2) SHAMIL BANK OF BAHRAIN V BEXIMCO PHARMACEUTICALS LTD [2004]
20/03/2018 Islamic Finance and the English Court 15
![Page 16: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/16.jpg)
Facts• murabaha and ijara
– ijara = lease
• governing law clause:
‘Subject to the principles of the Glorious Shari‘a, this Agreement shall be governed and construed in accordance with the laws
of England.’20/03/2018 Islamic Finance and the English Court 16
![Page 17: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/17.jpg)
QBD: facts and decisionClaimant: • admit two laws cannot govern• shari‘a incorporated by reference
Expert witnesses:• Islamic law confused (or confusing?)
Morison J:• art 1.1 Rome: Islamic law not law of a country
• ‘it is improbable in the extreme, that the parties were truly asking this court to get into matters of Islamic religion and orthodoxy’ [54]
20/03/2018 Islamic Finance and the English Court 17
![Page 18: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/18.jpg)
CA [2004]Potter LJ (Laws and Arden LLJ concurring)• in essence agreed with Morison J re Rome• incorporation of Islamic law inadequate
– though if sufficiently black letter could govern according to English contractual principles [obiter]
Court must:• give effect to intention of parties
– parties knew transactions were loans• substance over form
Islamic law set aside, English law applied20/03/2018 Islamic Finance and the English Court 18
![Page 19: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/19.jpg)
3) THE INVESTMENT DAR COMPANY KSCC V BLOM DEVELOPMENT BANK [2009]
20/03/2018 Islamic Finance and the English Court 19
![Page 20: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/20.jpg)
Facts• governed by English law alone
• wakala– wakala=agency
• Blom (Lebanese bank) advanced funds to the Investment Dar (TID) which was acting as agent
• TID could not re-pay– Kuwaiti company– objects clause of company constitution
mandates shari‘a compliance20/03/2018 Islamic Finance and the English Court 20
![Page 21: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/21.jpg)
The issue at the High Court (Chancery)
TID said:• wakala contract ultra vires
• non-compliant• unconditional obligation to pay
• even if expected return not realised
• though own shari‘a board had approved
20/03/2018 Islamic Finance and the English Court 21
![Page 22: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/22.jpg)
The decision [2009]J Purle:• procedural decision, without full trial
– no final determination on the wakala agreement
• TID partially successful – triable issue as to shari‘a compliance in view of
TID objects clause• whether transaction ultra vires TID• if so, respondent must pay full amount
– however even if ultra vires, restitutionary claim– principal only (not profit) – US$10 m payable to
Blom
20/03/2018 Islamic Finance and the English Court 22
![Page 23: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/23.jpg)
A) ObservationsDistinguish Blom from Beximco
– double barreled governing law clause absent in Blom, English law only
– wakala rather than murabaha
• shari‘a compliance issue arose due to objects clause under foreign company law
• not cast doubt on wakala agreements in general
20/03/2018 Islamic Finance and the English Court 23
![Page 24: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/24.jpg)
B) ObservationsRaises ultra vires spectrecommon element in Beximco & TID
Rupert Reed QC (in Butterworth’s 2014, 577) :• TID and Beximco (at the High Court only)indicate willingness to adjudicate Islamic law
AGAINST • Symphony Gems and Beximco at Court of
Appeal20/03/2018 Islamic Finance and the English Court 24
![Page 25: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/25.jpg)
C) Observations• danger of reliance on shari‘a board opinions
– even if both parties possess written fatāwa
• Norton Rose Fulbright advice to reduce ultra vires risk to obligees– recital or warranty that parties believe compliant– waiver re non-compliance– undertakings not to challenge, litigate
Sensible, but ineffective in Dana Gas…
20/03/2018 Islamic Finance and the English Court 25
![Page 26: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/26.jpg)
4) DANA GAS PJSC V DANA GAS SUKUK LTD & ORS [2017]
20/03/2018 Islamic Finance and the English Court 26
![Page 27: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/27.jpg)
Facts• mudaraba sukuk [joint venture]• asset: gas reserves in Iraq (Kurdish region) and Egypt• issuer/obligor: Dana Gas, a Sharja (UAE) company
• investor protection: non-recourse; re-purchase agreement
• financial distress• investors seek to trigger re-purchase agreement
• Dana Gas claims contract non-compliant, ultra vires• contradicting fatwā• argument: effectively investor capital guaranteed –
contrary to mudaraba allocation of risk
20/03/2018 Islamic Finance and the English Court 27
![Page 28: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/28.jpg)
The central issue in dispute• Multi-jurisdictional (BVI, English, UAE) • Three agreements:
– mudaraba agreement – purchase agreement – sale agreement
Agreements re shari‘a governed by UAE Civil Code.Purchase agreement governed by English law.
• two possible characterisations– as a single processOR– as three distinct processes
20/03/2018 Islamic Finance and the English Court 28
![Page 29: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/29.jpg)
Interim injunction ordered (July 2017) in HC, FL – Waksman J
• three agreements forming one purchase process• Ralli principle: that English court will not enforce
contract if its performance unlawful where performed– the mudaraba agreement as (prima facie) unlawful
under UAE law
Strengthened: • ultra vires defence of Dana Gas• view that Islamic law justiciable or at least binding
upon the English court
20/03/2018 Islamic Finance and the English Court 29
![Page 30: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/30.jpg)
November [2017] Legatt J• overturns Waksman J• three distinct, discrete processes• Ralli inapplicable as the agreement at issue
is ONLY the purchase agreement– governed by English law
• rejects all Dana Gas submissions that purchase agreement unenforceable
ongoing litigation in BVI and Sharjaappeal expected here
20/03/2018 Islamic Finance and the English Court 30
![Page 31: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/31.jpg)
5) GOLDEN BELT 1 SUKUK V BNP PARIBAS [2017]
20/03/2018 Islamic Finance and the English Court 31
![Page 32: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/32.jpg)
Factssukuk: investment certificateijara sukuk: sale-leaseback-(re-purchase)i) investors purchase sukukii) sukuk SPV purchases land from obligoriii) obligor
a) receives capital (for land)b) leases land backc) pays SPV/investors rent d) undertakes to re-purchase land, returning
value of subscription (effectively)20/03/2018 Islamic Finance and the English Court 32
![Page 33: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/33.jpg)
FactsUS$650 m, ten year tenorLand in KSA
Investor protection:• Non-recourse• Guaranteed by UHNW KSA national
– documented as promissory note • art 87 Law of Negotiable Instruments 1964 (KSA)
20/03/2018 Islamic Finance and the English Court 33
![Page 34: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/34.jpg)
Facts and decision (QBD) [2017]• Golden Belt financial distress• Two NY hedge fund (‘funds’) buyout• Promissory note formalities not complied with,
investors not compensated• inconclusive, ongoing restructuring talks
Males J:• arranger BNP Paribas had, and breached, DoC to
investors, i.e. to funds• failure to see to proper execution of promissory
note
20/03/2018 Islamic Finance and the English Court 34
![Page 35: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/35.jpg)
Observations• distinct from earlier cases
– Shari‘a board, ultra vires defence and Islamic contracts not at issue
• as in Dana Gas and TID, complexities relating to multiple jurisdictions (England, Bahrain, KSA)
• breach of DoC relating to KSA law
Questions: increases DoC for securities arrangers --whether specific to:• foreign jurisdictions (or these in particular)?• Islamic finance or any?
20/03/2018 Islamic Finance and the English Court 35
![Page 36: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/36.jpg)
III. CONCLUDING ANALYSIS
20/03/2018 Islamic Finance and the English Court 36
![Page 37: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/37.jpg)
Judicial learning curve• steep and relatively swift• significant advance in
– familiarity and understanding of Islamic finance– from low base in Symphony Gems and Beximco
• trite Islamic legal contracts no longer treated as idiosyncratic, incomprehensible
• modernisation: – focus on industry standards– replacing antiquarian concerns about Islamic
jurisprudence
20/03/2018 Islamic Finance and the English Court 37
![Page 38: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/38.jpg)
Familiarity≠ willing to adjudicate• Guidance from firms offered post-TID did not
prevent ultra vires defence in Dana Gas – individually rational for distressed obligors
• in short-term– collectively sub-optimal as sukuk less attractive
• near to long-term
• Dana Gas (July injunction) echoes previous judicial flirtation with Islamic legal issues (in TID v Blom)
• neither consummated; status quo restored – arguably good constitutional reasons
20/03/2018 Islamic Finance and the English Court 38
![Page 39: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/39.jpg)
Industry receptionEstablished: we will not see Islamic law appearing as governing law• favourable: market participants do not want
English judges issuing fatwas
Sukuk structured so that shari‘a compliance issues cordoned off • advantageous for investor protection• and therefore for investment
– FDI and portfolio– inward foreign investment -- into UK
20/03/2018 Islamic Finance and the English Court 39
![Page 40: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/40.jpg)
Islamic Finance and Brexit Impact of Brexit on Islamic banking and cross-border finance with a UK nexus
• post-EU diversification; Commonwealth• human and economic capital, trade
• reduced energy prices increases GCC borrowing (corp and sov)
• weak pound attracting inward investment• softening high end London property market20/03/2018 Islamic Finance and the English Court 40
![Page 41: Islamic Finance and the English Court Finance and the English... · 2018-03-20 · Islamic Finance and the English Court BACFI at TT International (London) 22 February 2018 Dr Scott](https://reader031.vdocument.in/reader031/viewer/2022040606/5eaeadb8ec0e7e1b4c38fe02/html5/thumbnails/41.jpg)
Islamic Finance, the City & the Bar Islamic banking and finance as sources of legal work
– City solicitors & the English Bar
MY CENTRAL CLAIM:– incorporation of Islamic law as T&Cs of English
contract (Beximco) • superior to precautionary measures attempted in
TID and Dana Gas• AAOIFI, IFSB, Majella bench book possible • maximise value of English law & legal system for
Islamic finance (and vice versa)international operations of SRA and Bar Council
20/03/2018 Islamic Finance and the English Court 41