Are investments in Hotels Shari’ah-compliant?

Shayan Maladwala, CMS Cameron McKenna Nabarro Olswang LLP

In the Islamic finance world, real estate has generally been the perfect asset class. An investment in a commercial real estate asset is usually an equitable, tangible and certain transaction with little room for speculation, uncertainty or unjust gains – all of which are impermissible pursuant to Shari’ah law. However, whilst hotels are a familiar asset class for Islamic and Middle Eastern investors, from a Shari’ah perspective, hotel financing can give rise to certain complexities, principally due to prohibited underlying revenue streams.

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Author: The Muslim Wealth Portal

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