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I Sfin  Vision On A Global Strategy For Islamic Finance V2
I Sfin  Vision On A Global Strategy For Islamic Finance V2
I Sfin  Vision On A Global Strategy For Islamic Finance V2
I Sfin  Vision On A Global Strategy For Islamic Finance V2
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I Sfin Vision On A Global Strategy For Islamic Finance V2

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iSlamic Finance Law

iSlamic Finance Law

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  • 1.   iSfin   The  world’s  leading  Islamic  Finance  lawyers                 Why  a  global  strategy  for    ISLAMIC  FINANCE  LAW  ?   COMMERCIAL  VISION  FOR  2011              
  • 2. An Immense  power  of  investment  in  2011   Sovereign  wealth  funds  have  an  increasing  interest  in  investing  globally.  The  first  wave  saw    investments  taking   place  in  the  Gulf  ,  the  second  wave  reached  the  West,  and  a  third  wave  is  likely  to  hit  globally.   The  persisting  global  economic  downturn  and  the  negative  growth  of  some  Western  economies  will  continue  to   affect  markets  throughout    in  2011.  After  Greece  and  Ireland,  who  will  be  next  ?  Portugal,  Spain  ?   The  Middle  East  was  not  hit  by    the  economic  recession  in  the  same  way  Europe,  the  US,  and  some  of  the  Asian   economies  were.  The  lack  of  liquidity  has  not  heavily  affected  the  region  and  its    markets  will  rebound  faster   than  others.   The  so-­‐called  ‘emerging  markets’  are  likely  to  balance  the  world  economy.  Islamic  financial  investors  have  now   the  liquidity  to  lead  worldwide  investments.  The  economy  has  to  recognize  and  service  these  investors  with  a   specific  profile  and  particular  needs.     Islamic  Finance  :  Money  and  Law   Sharia  accredited  investments  go  beyond    simple  financial  mechanisms  .  The  law  and  the  legal  framework   regulating    these  investments  are    substantial.  Islamic  finance  is  a  mix  between  money  and  law!   Global  law  firms  have  understood  the  potential  behind  Islamic  Finance  and  have  started  investing  in  sub-­‐practice   groups  within  their  Banking  and  Finance  departments.  Key  players  in  the  sector  include  Allen  &  Overy,  Norton   Rose,  Linklaters,  Clifford  Chance,  Hogan  Lovells,…  They  had  the  capacity  to  establish    a  broader  presence  and   have  opened  up  offices  in  several  centres  in  the  Middle  East.     They  were  followed  by  some  international  firms  who  started  establishing  one  or  two  small  outposts;  looking  to   take  advantage  of  the  high  predicted  growth  rates  for  the  Middle  East.  The  goal  is  obvious:  to  counterbalance   the  loss  they  faced  over  the  last  two  years  in  London  or  generally  in  their    Western  centres!   We  believe  this  strategy  is  wrong!   Ethically,  this  very  opportunistic  approach  had    some  firms  focusing  on    short-­‐term  investments,  whitout   developing    a  real  and  true  interest  in    those  countries.  This  reminds  us  of  another  –  bygone  -­‐  era  as  these  firms   simply  capture  their  «  fair  share  »  of  legal  work  associated  with  outbound  investments  without  seeking  to  satisfy   the  long-­‐term  aspirations  of  these  investors.  This  is  simply  against  the  spirit  of  Islamic  Finance  which  places   ethics  and  morals  at  the  heart  of  investments  …   Practically,  many  of  these  firms  simply  send  an  underperforming  partner  from  their  home  office  who  recruits  a   couple  of  local  associates  to  set  up  their  Islamic  Finance  practice.  The  most  skilled  lawyers  of  these  firms,  at  the     associate  level,  remain  in  the  home  office.  Resident  partners  often  only    stay  a  couple  of  years  then  go  home   and  lose  the  personal  connections  they  had  just  started  to  establish.   Geographically,  this  results    in  bilateral  or  at  best  slightly  multilateral  connections:  London  –  Dubai,  New  York-­‐ Abu  Dhabi,…  Even  the  global  firms  are  missing  out,  as,  while    they  may  be  able  to    place    a  few  real  specialists  in   Islamic  Finance  law  in  some  locations,  they  are  certainly  not  able  to  cover  all  their  offices  !  Most  local  offices  of   global  firms  do  not  have  the  faintest  idea  what  a  «  sukuk  »  is  about  !    
  • 3. iSfin  :  the  global  alternative   Private  and  public  Islamic  Finance  investors  are  now  seeking  a  truly  global  solution  to  allow  for    the  diversification  of  their   investments.  They  require  a  provider  of  legal  services  which  can  handle  :   - outbound  investments   - inbound  investments   - offshore  investments     No  law  firm  can  possibly  provide  a  team  of  legal  experts    active  in  :   - outbound  countries  such  as    UAE,  Saudi  Arabia,  Qatar,  Oman,  Bahrain,  Kuwait,  Malaysia,  Singapore,  Indonesia,…     - inbound  countries  such  as    the  G20  countries  as  well  as  emerging  markets  like  India,  China,  Brazil,…   - offshore  territories    such  as  Jersey,  Guernsey,  Malta,  Isle  of  Man,  BVI,  Luxembourg,..  that    offer    tax  structuring.     Banks,  funds,  private  and  public  investors  are  seeking  a  broader  network.  They  want  to  be  serviced  on  a  global  and  on  a   regional  scale.  They  are  looking  to  do  business  in  all  major  centres  and  seek  a  true  one-­‐stop  shop.   On  top  of  these  geographical  constraints,  financial  markets  are  increasingly  producing  deals  combining    both  conventional   and    Islamic  aspects.  They  require  two  sets  of  expertise  and  multi-­‐jurisdictional  access.   Property-­‐based  lending,  project  finance  &  infrastructure  projects  require  experience  from  true  Islamic  Finance  specialists.   Another  huge  emerging  market  is  opening  up  for  I.F.  specialized  lawyers  around  the  world  :  many  States  and   Governements  are  changing  their  regulatory  environment  to  make  it  Islamic  Finance  friendly.  Skilled  lawyers  should   accompany    the  legislative  process,  as  has  been  the  case  in  France,  Luxembourg  or  Spain.  Only  Local  lawyers  specialized  in   the  specificities    of  Sharia  law  can    achieve  this.     Understanding  sophisticated  needs   We  believe  that  Islamic  Finance  investors  need  to  be  serviced:   - by  expert  legal  practitioners  with  a  track-­‐record  and  experience  in  banking,  finance  and  tax  earned  working   directly    on  Islamic  Finance  files   - by  lawyers  well-­‐established  in  their  local  jurisdictions  with  access  to  a  global/worldwide  network  of  specialists   - by  skilled  individuals  in  the  country  of  origin,  the  target  country  of  the  investment  and  tax  havens  providing   support  for  the  deal.       iSfin  gathers  member  firms  in  all  key  countries,  with  coverage  in  more  than  90  countries,  enabling  it  to  provide  any   company  with  fully-­‐coordinated,  yet  locally-­‐specific,  global  advice  in  all  aspects  of  Islamic  Finance  (Shariah-­‐compliant   and  conventional  transactions).  Geographic  spread  includes  inbound  and  outbound  investment  markets  as  well  as  tax   haven  jurisdictions.   iSfin  cover  all  areas  of  Islamic  finance  contracts,  including  bai  salam,  ijara,  istina  /  salaam,  mudaraba,  murabaha,   musharakah  and  sukuk.  Debt  capital  markets,  securitization,  equity  capital  markets,  loans,  leveraged  Finance,   acquisition  finance,  asset  finance,  structured  finance,  project  finance  (power,  water,  petrochemicals,  oil  &  gas,…),   regulatory  and  shariah  governance,  real  estate,  investment  funds.        
  • 4.                    iSfin     CONTACTS   Prof.  Laurent  Marliere       General  Manager       Direct  Tel  :  +32  475  42  21  49   Switchboard  :  +32  2  550  38  20     LM@isfin.net               Only  the  best.   iSfin & Powerlaw are registered trade marks of Brainmatch SCS – Rue Van Eyck 28 – B-1000 Brussels  

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