Why Are Islamic Finance So Unnecessarily Complex? Join This Free Webinar to Find Out
People often wonder why Islamic finance contracts can’t be more plainly structured. Why aren’t Islamic finance products available in all states?
The reality is this is mostly due to legal and regulatory requirements from the federal and state governments.
Shaykh Yusuf Delorenzo described the process as one of overcoming multiple roadblocks. It’s like taking a pure contract. Then when you sit down, a regulatory hurdle comes up. At this point the legal, business, and shari’ah teams must come together and find a way to clear that hurdle without violating any of the given constraints. Once that one is cleared, then another one comes up, and another one. This is a long and grueling process, and the end result is a complex contract.
Not all hurdles can be overcome. in some cases, clearing a regulatory hurdle would mean going beyond the bounds set by the shari’ah board – this is usually why Islamic finance products are not available in certain states (despite high demand).
Shaykh Yusuf will be teaching a webinar this Saturday detailing the impact of regulatory requirements on the formulation of Islamic contracts. This webinar is crucial for anyone who is confused by some of the complexities of Islamic finance in the US and figuring out why things are set up the way that they are.
The webinar is free, but you must register to get the webinar link here with GoToMeeting.