Shariah-Compliant Contracts

The foundation of any Shariah-compliant transaction lies in properly structured contracts that reflect the principles and requirements of Islamic commercial law. Our contract drafting services ensure that all agreements are both Shariah-compliant and legally enforceable.

Our Drafting Contracts Services Include:

  • Sale Contracts
  • Ijara (Leasing) Agreements
  • Musharaka and Mudaraba Partnerships
  • Sukuk Documentation
  • Banking and Microfinance Agreements
  • Construction and Manufacturing Contracts
  • Agricultural Contracts
  • Real Estate and Construction Contracts
  • Corporate and Commercial Agreements

Sale Contracts

We draft all types of sale contracts in a Shariah-compliant manner, including forward sale (Salam), deferred payment sale (Bay’ bi Thaman ajil), cost-plus sale (Murabaha), ensuring that all needs and rights of the contracting parties are considered in the contract in a balanced manner, and ensuring all terms of the contract are fully in line with Shariah. We ensure proper disclosure of the sale terms, clear title transfer mechanisms and fulfillment of necessary supporting documentation. Our sale agreements cover various applications including real estate, asset acquisition, consumer goods, supply contracts, trade finance and working capital financing.

Ijara (Leasing) Agreements

Our Ijara contract drafting covers both operating and finance lease structures, including head lease agreements, sub-lease arrangements, and lease-to-own contracts. We ensure proper asset identification, maintenance obligations, insurance requirements, and end-of-lease options are clearly defined.

Musharaka and Mudaraba Partnerships

We prepare sophisticated partnership agreements for profit-sharing arrangements, used for startup funding, shareholder agreements and asset acquisition through diminishing Musharaka. Our contracts cover all crucial issues such as capital contribution requirements, profit and loss sharing ratios, management responsibilities, exit mechanisms and dispute resolution mechanisms. These contracts address the complex governance and operational issues in line with Shariah.

Sukuk Documentation

We draft comprehensive Sukuk documentation including trust deeds, special purpose vehicle establishment, purchase agreements, service agency agreements, and offering circulars. Our Sukuk contracts cover various structures such Murabaha, leasing, Mudaraba, and others.

Banking and Microfinance Agreements

We draft various Islamic banking and microfinance contracts including current and investment accounts agreements, as well as financing contracts including Murabaha, Mudaraba, Ijara, Ijara ending with ownership and Islamic trade finance.

Construction and Manufacturing Contracts

We prepare Shariah-compliant construction and manufacturing agreements based on Istisna’ contract.

Agricultural Contracts

We draft various types of contracts that serve agricultural sector needs, such as Salam contract, Muzara’a and Mugh’arasa contracts and Musaqa contract. Our structures strike the right balance between the crop producer, the financing company and the retailer.

Real Estate and Construction Contracts

We prepare Shariah-compliant real estate and construction agreements including Istisna (manufacturing) contracts, Salam (forward sale) agreements, and various property development arrangements that comply with Islamic commercial principles.

Corporate and Commercial Agreements

We draft a wide range of corporate and commercial contracts including joint venture agreements, distribution agreements, agency agreements, and service contracts, all structured to comply with Islamic commercial law principles and market regulations.

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The power of Sharia comes from its source. It carries the meaning of the path of right conduct that guarantees fairness, success and ethics. It is the most powerful guideline that will protect your business and make it successful.