Abstract
This Essay addresses collateral security structures and project financing structures used in project financings where the structure of, and documentation for, the financing is compliant with the precepts of Islamic Shari'ah. The Essay first provides a brief summary of the sources and exposition of Shari'ah principles in financing transactions. It then surveys economic and financial trends in Saudi Arabia promoting and supporting the project financings discussed in the Essay. General legal considerations influencing development of the structure are then identified, including the absence of a statutory structure, the inapplicability of stare decisis, and the fact that many laws are not published. A critical factor in any project financing, particularly in a jurisdiction in which Islamic law is predominant, relates to the available enforcement entities and paradigms and the degree to which Islamic Shari'ah is the basis for interpretation and enforcement of agreements. This Essay examines the enforcement regimen of Saudi Arabia and then examines three project financing case studies.
Recommended Citation
Michael J.T. McMillen,
Islamic Shari'ah- Compliant Project Finance: Collateral Security and Financing Structure Case Studies,
24 Fordham Int'l L.J. 1184
(2000).
Available at: https://ir.lawnet.fordham.edu/ilj/vol24/iss4/6