Sharia contravention

Islamic products

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The Islamic financing industry has become embroiled in a fierce debate over an innovative type of sharia-compliant structure that has been used as an underlying for product issuance. The structure allows investors to access returns from assets that are prohibited under sharia law by using a total return swap (TRS) in the form of an Islamic contract called a Wa'd (promise), so that the final return is delivered in compliance with sharia. Effectively the structure includes an investment in a shari

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