Table of Contents

Biographies Editor's biography Contributors' biographies Foreword Dr Zeti Akhtar Aziz, Governor, Bank Negara Malaysia, Kuala Lumpur Editor's introduction Sohail Jaffer, CIO and Partner, FWU Group, Luxembourg Part I: Shari'a-compliant investment guidelines 1 Islamic investment funds Trevor L. Norman, Volaw Trust & Corporate Services Limited, Jersey Introduction Definition and asset classes Structures Investment selection Purification of earnings Trading issues Conclusions 2 Shari'a supervision of Islamic funds Shaykh Yusuf Talal DeLorenzo, Yasaar Limited, London Introduction The need for Shari'asupervision Background to supervisory boards Organisation of Shari'asupervision Shari'a supervision as consumer advocacy Funds without supervision Shari'a supervisory functions Monitoring fees Internal processes Board interfacing Shari'a board compensation Conclusions 3 Screening criteria for Islamic equity funds Rodney Wilson, University of Durham, Institute for Middle Eastern and Islamic Studies, Durham Introduction Principles and practices of Islamic equity investment Differences between equity investment and musharaka and mudaraba The advantages of fund management for Islamic equity investments Sector screens for Shari'a compliance Financial screening Lessons from the ethical investment industry Widening the remit for Shari'a screening 4 Islamic indexes: the DJIM framework Rushdi Siddiqui, Dow Jones Indexes, New York Introduction Index construction Role in the capital markets Islamic indexes Islamic screens: the DJIM approach Impact of Islamic screens Performance Conclusion Part II: Islamic investments 5 Restoring confidence to Islamic equity investors Andrew Broadley, NCB Investment Services, Jeddah Introduction Anxiety factors Transparency and accountability Regulation Conclusion Contents 6 Latest developments in Islamic investments Nizar A. Alshubaily, Shamil Bank, Kingdom of Bahrain Introduction Islamic equity builder certificates Bai al-urboun Islamic CDOs Securitisation Conclusion 7 Islamic fixed-income securities: sukuk Nathif J. Adam, National Bank of Sharjah, UAE Abdulkader Thomas, SHAPETM Financial Corp. and AJ IF.org, Virginia Background Shari'a principles and perspectives relating to sukuk Sukuk implementation structures and parameters Recent government and corporate issues and market trends Potential of sukuk for fund management purposes The road ahead for sukuk Conclusion 8 Successful private equity investing: guiding principles Nick D. Lodge, intellectual capital partners limited, London Introduction Private equity: asset class overview and comment Private equity and Shari'a Conclusion 9 Private equity: an Asian perspective Darawati Hussain, Commerce International Merchant Bankers Bhd (CIMB), Kuala Lumpur Introduction Private equity defined Portfolio asset allocation strategy Meeting Islamic investors' requirements Shari'a issues relating to investments CIMB Muamalat Fund 1 Case study: Big Tree Conclusion 10 Models for development of Shari'a-compliant private equity and venture capital funds J.C.F. Lufkin, Matrix Group, Manila, Singapore and Kuala Lumpur Introduction Investee assessments Important design variables and common considerations The models Conclusion Appendix: specimen investment memorandum 11 Investing in real estate funds Khuram Hussein and Asif Iqbal, iHalal Financial Services, Dubai Michael Samuels, Kleinwort Benson, London Introduction Property fund checklist issues Shari'acompliance Conclusion 12 Islamic leasing funds Robert W. Toan and Monir Barakat, Wafra Investment Advisory Group Inc., New York Conventional and Islamic leasing contracts Structuring a US equipment leasing fund Taxation of cross-border ijarah transactions Credit enhancement in ijarah transactions Strategic ijarah investments in emerging economies Part III: Takaful life and health plans 13 Role of development policies in strengthening the takaful industry James Hume, Dubai International Financial Centre (DIFC), Dubai Introduction Industry challenges Conclusions 14 Islamic health insurance Wayne Close, British United Provident Association (BUPA), Jeddah William Essex, writer Introduction Contents Shari'a-compliant insurance Contractual issues Islamic insurance in practice Future prospects Part IV: Legal and regulatory issues 15 Legal implications of structuring and offering Shari'a-compliant investment products Ayman H. Abdel-Khaleq, Vinson & Elkins LLP, Dubai Introduction Structuring Shari'a-compliant investment funds Examples of Shari'a-compliant investment structures Legal frameworks for the offering of Islamic funds Conclusion 16 Structuring the Shari'a-compliant transaction involving non-compliant elements Michael J.T. McMillen, King & Spalding LLP, New York Introduction A critical commonality A rahn-adl collateral security structure An istisna'a-ijarah construction and mini-perm finance structure The new French credit bail immobilier structure A residual interest sale structure in a South Korean securitisation Conclusion 17 Building investor confidence through better governance and transparency Sameer Abdi, Islamic Financial Services Group, Ernst & Young, Kingdom of Bahrain Introduction The need for branding Developing a viable brand Corporate governance and financial transparency: tipping the selection scales Corporate governance: issues and leading practices Financial transparency: issues and leading practices Conclusions Part V: Forming the future 18 The Islamic dinar and the Islamic Central Bank Khalid Yousaf, Dubai International Financial Centre (DIFC), Dubai Introduction A new currency and central bank? Currency basket linkage The mechanics of reform Conclusion 19 Achieving sustainable growth in Islamic finance Adam Ismail Ebrahim, Oasis Group Holdings, Cape Town Introduction Regulation and standardisation Benchmarks Transparency Solidifying the framework Conclusions Glossary The co-publishers