The office's experience in the Islamic finance sector
The Firm is especially renowned for its professional expertise in the field of Islamic finance, as demonstrated by the following:
1. The founding partner Rashed Al-Ghonaim, is a member of many Sharia boards of numerous prominent financial or- ganizations such as Amlak International for Real Estate Development & Finance Company, Medgulf Cooperative Insurance Company, Middle East Financial Investments Com- pany (MEFIC), Tawuniya for Cooperative Insurance Compa- ny (Tawuniya) and Gulf International Bank (GIB). Rashed Al- Ghonaim has extensive experience in structuring financial products for many banks and finance companies.
2. Familiarity and specialization of many of The Firm’s practi- tioners in financial frameworks and regimes; has been de- rived from long experience and participation in the work- shop assigned with the task of drafting the main legislation/ laws of the Saudi finance regime (i.e., the Real Estate Finance Law, the Finance Companies Controlling Law, the Finance Leasing Law) respective supporting laws (the Registered Mortgage Law, the Enforcement Law) relevant implement- ing regulations.
3. Provision of legal advice support the activities of Ameri- can Express in the Kingdom.
4. Engagement in structuring, drafting and developing fi- nancial products for prominent final instructions in Saudi Arabia, such as Samba Financial Group, Al Jazeera Bank, Riyadh Bank, Al Rajhi Bank, Saudi Investment Bank, Am- lak International for Real Estate Development & Finance Company and Saudi ORIX Leasing Company.
5. Practical experience representing numerous financial in- stitutions in lawsuits before general courts and Commit- tees for Banking and Financial Disputes and Violations.
The Firm’s Sharia and Legal Services with respect to Islamic Finance :
The Firm provides a spectrum of services to its clients in the fol- lowing practice areas:
First: incorporation of all types of financial organizations:
Forming finance companies; following up the formation requirements be- fore all competent authorities (such as the Saudi Arabian Monetary agen- cy, the Ministry of Commerce, and other similar competent authorities).First: Legal structuring services for financial institutions
Second: finance products services:
a. Real estate finance products:
1. Structuring, developing, and drafting real estate finance products (in- cluding main contracts/ agreements, implementing documents and manual procedures relating to each respective product) based on main Islamic contracts: murabaha, ijara muntahia bitamleek, istisna, diminishing musharaka , 1. covering all types of real estate finance:
- a- Financing for acquiring villas and apartments;
- b-Financing for acquiring real estate through ijara mawsufa fi thima;
- c- Financing for acquiring land plots with or without permission for building;
- d- Financing for acquiring residential and commercial buildings – with designing a legal mechanism for repayment from rental proceeds. With the design of a legal mechanism for repayment from the proceeds of the buildings.
2. Development of secondary products and legal mecha- nisms supporting main products such as:
- Co-borrowing arrangement based on two persons sharing the burden of repaying financial obligations ensu-
- Financing for non-Saudis;
- Programs for financing employees of industrial and commercial companies;
- Sharia mechanisms for re-financing;
- Sharia mechanisms for transferring obligations under a finance agreement to a new customer.
a. Movable assets financing:
Drafting contracts for financing movable assets (cars, goods, Mechanisms) according to traditional formulas such as Murabaha and Ijarah Muntahia Bittamleek.
c. Products for availing cash:
Designing cash liquidity products for clients according to the mechanisms of Tawarruq and Ijarah (purchasing real estate assets from the client, Then lease it to him (a lease ending with ownership) and other appropriate legal mechanisms.
third: Third: consultation services for financing:
1. Reviewing the contract models adopted by Islamic financial institutions and their implementation mechanism, Amending it to comply with the regulatory requirements of the financing systems and their implementing regulations.
2. Analyzing traditional Islamic finance formulas in terms of their advantages and disadvantages, Legal risks, Legal issues, Proposing suitable models that meet the client’s business, marketing and legal needs.
3. Developing procedural guidelines for financial products, So that the product implementation stages are clearly shown. The documentary cycle for it, A mechanism for overcoming legal risks and legitimate or procedural problems.
4. Developing legitimate and legal solutions to practical problems that Islamic financial institutions may face in their dealings with customers.
5. Keeping up with the work of banks and finance companies, Providing supporting legal advice, This ensures full compliance with the legal regulations governing the work of finance companies. According to what is detailed in the financing systems and their executive regulations, and it prevents banks and finance companies from committing any legal violations or facing any procedural obstacles.
Fourth: Sharia audit and review services
1. Forming Sharia boards for Islamic financial institutions.
2. Drafting internal bylaws for Sharia boards.
3. Drafting Sharia compliance manuals for Islamic financial institutions.
4. Conduct Sharia audits of transactions undertaken by Islamic financial institutions And to ensure that it complies with Sharia standards and rules.
Fifth: Litigation services
1. Providing legal advice related to violations and disputes, Public and private rights claims arising from the application of the provisions of financing regulations.
2.Representing clients before Committees for Banking and Financial Disputes and Violations.