Shariah advisory

A Shariah opinion is only useful if it holds up. We review your structure and documents against AAOIFI Shariah Standards and Pakistan's regulatory framework, then tell you plainly what is compliant, what is not and what to change.

What we do

Shariah compliance review and screening

A full review of a company, fund or portfolio: what the business does, how it is financed and where its income comes from, tested against AAOIFI screening criteria.

  • Business activity and financial ratio screening
  • Purification ratio for impermissible income
  • Dividend cleansing calculation for investors

Product structuring

Design and review of Islamic financing and investment products, from the term sheet to the final contract set, so that each step of the transaction is valid on its own.

  • Murabaha, Ijarah, Musharakah and Diminishing Musharakah
  • Sukuk structures, SPV and asset transfer
  • Salam and Istisna for trade and working capital

Shariah audit and ongoing monitoring

Periodic testing of how products are actually executed, because a sound contract can still be undone by the wrong sequence of documents or payments.

  • Sample testing of executed transactions
  • Findings reports with corrective actions
  • Annual compliance review and alerts on changes

What you receive

  • A written Shariah opinion signed by qualified scholars
  • The standards and evidence each finding relies on
  • A list of changes needed, in order of priority
  • A purification or cleansing calculation where income needs it

Who we work with

  • Islamic banks and Islamic banking windows
  • Asset management companies and Shariah-compliant funds
  • Listed companies seeking a compliance view of their business
  • Takaful operators and microfinance institutions
  • Businesses moving from conventional to Islamic financing

The review process

  1. Scope

    We agree what is being reviewed, which standards apply and the documents we need.

  2. Review

    Our scholars read the contracts, process flows and financial statements, and test them clause by clause.

  3. Opinion

    You receive a signed opinion with findings, the evidence behind them and the changes required.

  4. Monitor

    We check execution over time and tell you when a change in the business or the standards affects the opinion.

Al-Ihkam gives Shariah advisory opinions. We do not give legal, tax or investment advice, and an opinion covers only the facts and documents reviewed.

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