Regulation not religion

Author: | Published: 1 Dec 2007

Rachel Evans
Staff writer

It has been the next big thing for years. It has provoked speculation and hype from lawyers and media alike. But now Islamic securitisation has broken into the Middle East, lawyers and investors are realising that it might have been a false idol.

Tamweel, a real estate company headquartered in the United Arab Emirates, closed the first true-sale securitisation in the GCC in July. Unlike a conventional securitisation, the pool of assets backing the transaction and the notes resulting from it complied with Islamic law. The $210 million transaction was backed by a portfolio of ijara, Islamic leases which play a similar role to conventional mortgages, and the notes were structured as sukuk, asset-backed Islamic bonds....