Islamic Corporate Finance Structures
National Finance provides advisory and consultancy for companies that want to fund their business in a Sharia-compliant way. We work with corporates, family businesses, project sponsors and growing companies in the UAE, the GCC, Africa and the Philippines to choose a suitable Islamic finance structure, prepare a bank-ready information pack and coordinate with the Islamic banks, Sharia advisers and legal counsel who review and execute the transaction.
What is Islamic corporate finance?
Islamic corporate finance funds a business through trade, leasing, agency or partnership contracts instead of interest-based loans. Each arrangement is linked to a real asset, a purchase of goods, a service or a shared business activity, and the return comes from that underlying activity: a disclosed profit on a sale, rent on a lease, a fee for an agent or a share of profits in a partnership. Choosing the right contract depends on what you need the money for, the assets you have and how your cash flows behave.
Common structures for companies
| Structure | How it works | Typical business use |
|---|---|---|
| Murabaha (cost-plus sale) | The bank buys goods from a supplier and sells them to the company at cost plus a disclosed profit, payable on deferred terms | Raw materials, inventory, parts, fixed assets, general liquidity |
| Ijara (lease) | The bank buys an asset and leases it to the company for periodic rent; an option to transfer ownership at the end may be included | Property, plant, machinery, vehicles |
| Istisna (manufacture or construction) | An asset is built or manufactured to specification, with delivery at a future date | Construction, factories, infrastructure, specialised equipment |
| Musharaka (equity partnership) | Both parties contribute capital; profits are shared as agreed and losses in proportion to capital | Acquiring fixed assets, joint ventures, projects |
| Mudaraba (investment partnership) | One party provides capital and the other manages the business; profits are shared at a pre-agreed ratio | Investment and business ventures |
| Wakala (agency) | One party acts as agent for another for an agreed fee | Financing programmes, letters of credit, payments and collections |
| Kafala (guarantee) | The bank acts as guarantor to a beneficiary on the company’s behalf | Guarantees and letters of credit for trade and contracts |
Larger transactions often combine contracts, and capital-market funding can be raised through Sukuk. See our Sukuk Issuance Advisory page for Sukuk structures and listing options.
How Islamic finance is regulated in the UAE
- Higher Sharia Authority (HSA): established by UAE Cabinet resolution and reaffirmed by Federal Decree-Law No. 14 of 2018 on the Central Bank, the HSA sets Sharia rules and standards for licensed Islamic financial institutions and supervises their internal Sharia supervision committees.
- AAOIFI standards: under HSA Resolution No. 18/3/2018, the Sharia standards of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions) are mandatory for Islamic financial institutions operating in the UAE.
- Commercial law: the Central Bank notes that Federal Decree-Law No. 50 of 2022 on commercial transactions gives legal certainty to Sharia-compliant contracts.
In practice, this means a UAE Islamic bank’s internal Sharia committee must approve each product and transaction. A well-prepared company makes that review faster.
How we work with you
- Discovery: purpose of funds, amount, tenor, currency and the assets or contracts behind the need.
- Structure options: a short paper comparing suitable Islamic structures with each other and, where useful, with conventional options.
- Information pack: company profile, audited or management financial statements, cash-flow projections, asset and supplier details, and use of proceeds.
- Institution coordination: introductions and follow-up with Islamic banks, Islamic windows, Sharia advisers and legal counsel, who carry out their own assessment.
- Through to completion: tracking term sheets, document requests and conditions, so management can stay focused on the business.
Who this is for
- UAE companies that want their funding to match a Sharia-compliant policy or ownership
- GCC groups expanding into the UAE or restructuring existing facilities
- African and Philippine businesses trading with the UAE, or sponsors using UAE institutions for projects
- Family businesses preparing for growth, acquisitions or a future Sukuk
Related services: Islamic Finance · Trade Finance · Working Capital · Project Finance & Investment Structuring · Acquisition Finance Advisory
Frequently asked questions
Can a non-Muslim-owned company use Islamic finance?
Yes. Islamic finance is open to any company whose business activity and use of funds are acceptable under the Sharia standards applied by the institution.
Is Islamic finance more expensive than a conventional facility?
Not necessarily. Pricing depends on the institution, the company’s credit profile, the structure and market conditions. We help you compare offers on a like-for-like basis.
Which structure is best for working capital?
Murabaha is commonly used for inventory and raw materials, and Wakala-based programmes are used by some banks. The right answer depends on your trading cycle; we review it during the first consultation.
Does National Finance provide the financing or approve the structure?
No. National Finance acts in an advisory and consultancy capacity only. We do not lend, issue, underwrite or sell securities. Financing decisions are made by licensed institutions, and Sharia approval is given by their Sharia committees or independent Sharia advisers.
Discuss your requirement
Tell us what you need the funding for, the approximate amount, currency and country. Request a consultation and our team will review your objectives in confidence.
Educational information only. A consultation is not an offer of financing, investment advice or a Sharia pronouncement, and no structure is represented as approved or Sharia-compliant without the relevant independent review. Approval of any financing is not guaranteed and rests with licensed institutions. Information checked October 2026.