Murabaha financings post-AAOIFI Standard 59 – a couple of alternative approaches while the dust settles
By EsqSocial Corporation 03/05/21
The adoption of Shari'a Standard Number 59 regarding the Sale of Debt (Standard 59) by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and, in turn, in the United Arab Emirates (UAE) by the UAE Central Bank is causing some consternation for those involved in Islamic finance transactions structured as commodity murabahas (Murabahas) with variable profit rates (the equivalent of a variable interest rate in a conventional financing)....
By: Dentons