The best Islamic real estate deal 2023
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The best Islamic real estate deal 2023

Abdulwahed Ahmad Rashed Bin Shabib’s AED455 million ($124 million) financing.

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Breaking the recent logjam in UAE real estate market deals is no small achievement for any deal. Abdulwahed Ahmad Rashed Bin Shabib achieved that and more with its $124 million refinancing this year.

Led by Emirates Islamic Bank, the deal from the Dubai construction and property company has consolidated its exposure to the sector. Using a liquidity murabaha structure, the transaction ring-fenced the cash flows of the wider company from volatility in certain real-estate holdings.

The Shariah-compliant liquidity structure is based on the bank purchasing tradable funding-limit certificates and selling them to the client – with an added profit margin. This was achieved without the involvement of commodities, which are often required under murabaha structures.

The proceeds from securitizing existing real-estate assets have helped the company diversify its overall business interests and position itself for future deals. These include investments in a variety of sectors such as government services, pharmaceuticals and hospitals.

The deal structure also offers other sectors a blueprint for strengthening corporate foundations in challenging market conditions.

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