Shariah compliance for family structures

Your situation

• A family business with several companies, some financed with conventional loans, that the family wants brought into line.
• A holding structure whose investments nobody has screened.
• A foundation or trust set up abroad, whose terms were never checked against Islamic inheritance rules.
• A plan to pass the business to the next generation in a way that respects the fixed shares and keeps the business whole.

What a Shariah review covers

1. Activities. Each company's business is checked against the prohibited activities under Islamic law. Where part of a group's income comes from a prohibited source, the review says what must change.
2. Finance. Borrowing and lending are checked for interest-based terms, and Islamic finance alternatives from licensed Islamic banks are identified where a company is financed conventionally.
3. Investments. The holdings are screened, and rules for future investment are written into the structure.
4. Governance. The trust deed or foundation charter names a Shariah adviser, records how the council or trustee takes that advice, and sets how often the structure is reviewed. The DIFC Court of Appeal has confirmed that a trustee may rely on a Shariah adviser. [3]
5. Succession. Distributions and the will are checked against the fixed shares and the one-third limit under Federal Decree-Law No. 41 of 2024. [2]

What we do

• We map the structure: every company, holding and account, what it does, how it is financed and who owns it.
• We prepare that record for the Shariah adviser's review, and set out the changes the review calls for in the order they can be made.
• We redesign the structure where needed, with the tax and company rules of each country involved in view.
• We form and administer the UAE companies involved, including RAK ICC companies, and keep their accounts.
• We coordinate the Shariah adviser, the law firm, the banks and your tax advisers to one timetable, and diarise the periodic review.

What a licensed partner does

• A Shariah scholar or Shariah advisory firm carries out the review and confirms compliance.
• A licensed Islamic bank provides any replacement finance. You choose and contract with it directly.
• A law firm redrafts charters, deeds and agreements.
• A licensed trust company acts as trustee where a trust is used. You appoint it directly.

You appoint and contract with each one directly. Under a Full Mandate, we run the whole plan.

Related guides

• Shariah-compliant trusts and foundations →
• Inheritance law in the UAE →
• Holding companies in the UAE →
• UAE corporate tax explained →

Questions people ask

Who decides whether a structure is Shariah-compliant?

A Shariah scholar or advisory firm, applying recognised standards. In the UAE's financial sector those are the AAOIFI Shari'ah Standards, adopted by the Central Bank's Higher Shari'ah Authority. Marlborough Gulf prepares the structure for review and coordinates the changes; it does not give religious rulings. [1]

Can a company in a Shariah-compliant structure borrow from a bank?

Through Islamic finance from a licensed Islamic bank, yes. Interest-based borrowing is what the review identifies and replaces. [1]

Does Shariah compliance change who inherits?

No. The fixed shares under the personal status law for Muslims still apply. A compliant structure is designed to hold and pass on assets within those rules, not around them. [2][3]