Islamic law, the Sharia, covers all economic and social activities of Muslims. One of the main rules of the Sharia for economic activities is the explicit prohibition of 'riba', which can be translated as interest. A variety of financing structures have now been developed that are Sharia-compliant.

Another important principle of Sharia law is 'contractual certainty', which means that contracts may be void if they are unclear or contain contradictions. It is therefore extremely important that great care be taken in drawing up these kinds of contracts.

In the Netherlands, the discussion at present focuses above all on the 'Halal mortgage' and the way this form of finance is viewed by the tax authorities in the light of the deductibility of payments that the borrower makes to the bank. However, the Netherlands is of potential interest not only for the private home mortgage market, but also to Muslim investors for other Sharia-compliant financing structures.

CMS Derks Star Busmann's specialists in Islamic Finance can look after your interests in a professional manner. We offer specific expertise in this area from a number of offices, including our office in London, and by means of our association with The Levant Lawyers (TLL) with offices in Abu Dhabi, Dubai, Kuwait and Lebanon.