A Suggested Structure for the Issuance of Shari’a Compliant Securities by Deutsche Bank

A Suggested Structure for the Issuance of Shari’a Compliant Securities by Deutsche Bank

The Structure ………………………………………………1

The Relevant Documents……………………………… 1

The Parties…………………………………………………. 1

The Structure…………………………………….………. 2

The Economic Effect…………………………….……. 3

An Example…………………………………….…..…… 3

The Derivatives Aspect……………………….……..4

The Shari’a Related Issues………………………..…5

Dissecting the Structure…………………………..…5

Promises and Contracts in the Shari’a………… 5

The Nature of Promise ………………………………7

Promises and Exclusionary Reasons

for Action………………………………………..…….. 9

Promises and New or Additional Reasons

for Action………………………………………………. 9

The Obligation to Keep a Promise…………… 9

Promises and Conventions……………………. .9

Conventionalism and Trust …………….……12

Representative

Promising and the Avoidance of Harm …..15

Back to Fidelity …………………………………….16

Damages for Breach and Compensation

to Unwind Promises……………………………… 18

Jahala (Ignorance) of Price at the Time

of Promising ………………………………………..19

Conclusion…………………………………………. 22

Annex 1

The Dar Al Istithmar Shari’a Supervisory Board……. 23

Annex 2

Mathematical Proof………………………………………….. 24