Buzz Archive:
Shariah Compliance: Opportunities for Private Equity

by Simon Witney, Partner, SJ Berwin LLP, 2/28/2008

Whatever the long term impact of the credit crunch on U.S. and European private equity, one trend is already clearly established: the private equity market is (and has to be) increasingly global. That has many implications for funds (and their advisers), but one of them is that making funds attractive to investors worldwide is now even more important.

The GDP of the Middle East and North African region (MENA) grew by 5.5% in 2007 (compared to a global GDP growth of 3.6%) and, according to the Gulf Venture Capital Association, more than $18 billion (€12.28 billion) has been raised since 1994 for investments in closed funds in the region. It is an important source of both capital and investment opportunity, and it means that it is ever more important for financial institutions and fund managers to become familiar with Islamic finance law and practice. This week, Simon Witney, Partner at London-based SJ Berwin LLP gives an overview.