Legal Issues in Islamic Reits Muhammad Ismail

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islamic 48 reits 42 ismail 33 mohamed 33 shariff 32 january 31 activities 18 ctd 18 reit 18 permissible 12 shariah 12 tax 12 estate 10 investment 10 guidelines 8 income 7 malaysia 7 products 7 rental 7 investors 6

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s fmiarb fciarb fmiarb lincoln s inn barrister at law of lincoln advocate and solicitor of the high court of malaya the supreme court of the republic of singapore january mohamed ismail shariff reits a creits are real estate investment trusts
islamic financial markets conference and specialised workshops karachi a january topic islamic reits a legal legislative issues in i reits by mohamed ismail mohamed shariff s pore ll

january mohamed ismail shariff islamic reits a c given the apparently rather simple structure of a reit how different can an islamic reit be a c the answer is it can be and has to be rather different
a chowever the law relating to trusts investments and real estate are generally well established in almost all jurisdictions subject to particular features in the law peculiar to each jurisdiction

a c malaysia is given credit as the first jurisdiction in the global islamic sector to have issued guidelines for islamic real estate investment trusts and setting a global benchmark for the development of islamic reits
there is no universal definition though all definitions have to comply with the requirements of the shariah

what is the position where mixed activities permissible and non permissible are carried on in the premises in other words what is the criteria to be used in deciding whether an islamic reit may purchase a property where mixed activities are operated january mohamed ismail shariff
islamic reits ctd a c on november the securities commission of malaysia issued guidelines for islamic reits called guidelines for islamic real estate islamic trusts the guidelines

islamic reits ctd a c regarding the st issue the guidelines adopts the elimination method of definition ie it sets out what are nonpermissible activities
manufacture or sale of non halal products or related products

this involves a aggregating the rental from all nonpermissible activities in the property in question and next january mohamed ismail shariff islamic reits ctd a ascertaining the proportion the aggregate rental so determined bears to the total turnover of the islamic reit
islamic reits ctd a c as regards the second issue the guidelines says that where mixed activities are carried on the islamic reit manager must conduct additional compliance assessments

january mohamed ismail shariff islamic reits ctd a c an islamic reit is not allowed to own real estate in which all the tenants operate non permissible activities even if the percentage of the rental from that property to the total turnover of the islamic reit is less than ie below the benchmark
islamic reits ctd a c this is the benchmark the benchmark set by the shariah advisory council of the securities commission malaysia as the threshold on rental from non permissible activities that is allowed in an islamic reit

january mohamed ismail shariff islamic reits ctd a c for activities that do not involve usage of space such as service based activities the calculation is left to be determined by ijtihad by the shariah committee or shariah advisor of the islamic reit

a c however where the takaful scheme is unable to provide the required coverage islamic reits are allowed to use conventional insurance schemes
investment deposits and financing a c it is stipulated that all forms of investment deposit and financing instruments for islamic reits must comply with shariah principles

january mohamed ismail shariff risk management ctd a c where islamic reits deal with conventional financial institutions they are allowed to conduct forward sales and purchases in the conventional way
this means that only the party that initiates the promise is obligated to fulfill it

january mohamed ismail shariff

consultancy january legal valuation fees mohamed ismail shariff etc

some proposed changes in tax treatment of reits a c i non corporate reit investors will be subject to withholding tax for years on distributions by reits a c ii foreign institutional investors will be subject to withholding tax for years on distributions by reits a c iii reits will be exempt from income tax if at least of their total income is distributed to investors
january mohamed ismail shariff milestones in islamic reits a c one islamic reit the al aqar kpj healthcare reit hospitals was issued and listed on the stock exchange in malaysia in

january mohamed ismail shariff moving forward ctd a c these products may not at once be shariah compliant but a start must be made at some time and then improvements can be made along the way to attain the desired level
moving forward a c the issuance of islamic reits has once again demonstrated the innate adaptability of islamic finance principles to meet modern day market requirements

it is hoped other countries will follow and help produce a more refined and wholly shariah compliant product
a c contact details a mohamed ismail md shariff a tel a fax

Please note, This is an auto generated summary based on sentances position in the document and other factors

DOCUMENT WORD ANALYSIS

Main Category

AlHuda Material\sukuk islamic

KeyWords

reit estate invest tax trust NA account incom NA finance boardwalk manage rental busi pakistan limit leas properties NA distributable

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Number of Pages

15

Published Date

2007-01-31 15:37:49

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Legal Issues in Islamic Reits Muhammad Ismail

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