Introduction: A Converging Opportunity

The Gulf Cooperation Council (GCC) stands at the intersection of two powerful trends: the accelerating demand for private capital and the structural growth of Islamic finance. The global Islamic finance market has surpassed USD 3 trillion in assets under management (IFSB, 2023), with sukuk issuance alone growing at a CAGR of 6.4% between 2018 and 2022 (Moody’s, 2023). Yet, despite this scale, capital raising options remain concentrated in bank financing or sukuk, both of which can be slow and inflexible.

In this article, we share our combined insights into Shariah-compliant financing issuances. Drawing from our strategic partnership, we outline how Actively Managed Certificates (AMCs) underpinned by Murabaha contracts create a disciplined pathway for “fixed-profit” capital raising. This collaboration brings together ISP Group’s Swiss-regulated expertise in structured products with Kingsbury & Partners’ deep GCC market knowledge, delivering an end-to-end issuance. From initial structuring and Shariah certification, through commodity netting and SPV setup, to market launch with a Swiss ISIN, the framework is designed to provide both issuers and investors with transparency, speed, and institutional-grade governance.

ISP Group, a Swiss privately-owned investment boutique with offices in Zurich, Geneva, Dubai, Hong Kong, and Israel, specializes in Asset Solutions, including Shariah-compliant AMCs. Together, we're empowering GCC companies to access halal capital efficiently and compliantly. 

What Is Shariah-Compliant Financing? 

Shariah-compliant financing follows Islamic law, prioritizing fairness, transparency, and real economic activity. Core principles include: 

  • Prohibition of Riba: No interest; profits must stem from legitimate trade or partnerships.
  • Asset-Backing: Transactions tied to tangible assets, avoiding speculation (gharar) or gambling (maysir).
  • Halal Compliance: Excludes prohibited sectors like alcohol or gambling. 

Popular structures encompass Murabaha (cost-plus sale) and Wakalah. Murabaha stands out for "fixed-profit" arrangements, where assets are sold at a markup with deferred payments, simulating debt ethically. 

For GCC entities, this opens doors to Islamic investors seeking compliant yields, especially in growth areas like renewables and infrastructure. 

The Role of Issuances in Raising Capital 

Shariah-compliant issuances, such as Sukuk or AMCs, tap into vast Islamic capital pools while ensuring halal adherence. Unlike conventional debt, these generate returns via asset markups or rentals, not interest. 

For example, a solar energy firm can initiate an AMC where investor funds finance commodity purchases, sold to the company at a fixed profit. This creates predictable repayments from project revenues, all validated for Shariah compliance. 

 John Hubball: "In the GCC, where ethical investing is paramount, these issuances diversify funding beyond banks, attracting family offices and institutions hungry for asset-backed opportunities." 

Kristina Nikolendzic: "Our partnership provides the full wrapper, handling everything from SPV establishment in jurisdictions like Jersey or the Caymans to seamless commodity trades via approved platforms, ensuring the issuance goes live swiftly and compliantly." 

AMCs as a Shariah-Compliant Issuance Tool

Actively Managed Certificates (AMCs) are securitised notes issued under a Swiss ISIN, settled through Euroclear/Clearstream, and actively managed according to a defined strategy. When embedded with a Murabaha facility, they serve as efficient, transparent vehicles for Shariah-compliant capital raising.

Advantages Over Funds or Sukuk

  • Speed: AMCs can be launched in as little as 4–6 weeks, compared to several months for sukuk.
  • Cost Efficiency: lower costs compared to fund structures and full Sukuk issuances.
  • Scalability: Minimum seed capital of CHF 2 million, suitable for building track records before scaling.
  • Accessibility: Swiss ISIN enables distribution through private banks, platforms, and family office channels.

For GCC issuers in sectors like renewable energy, infrastructure, or trade finance, this represents a viable alternative to bank lending—without breaching Shariah rules.

Non Shariah

Issuing Shariah-Compliant "Fixed-Profit" (Debt) via AMCs: A Practical Guide 

AMCs are structured products issued with a Swiss ISIN, allowing active management like a portfolio but with Shariah overlays. They channel funds into Murabaha facilities for debt-like financing. 

The structure adapts to the borrower's setup: 

  • If the borrower has its own Shariah board for certification, financing can flow directly from the issuance SPV.
  • Otherwise, a two-step process creates an additional Murabaha SPV (e.g., in the Cayman Islands) for ring-fenced compliance. 

Drawing on our collaboration with ISP Group, the issuance lifecycle follows a disciplined, transparent structure:

1. Structuring the AMC

  • A SPV (e.g., Jersey) issues the Shariah-compliant AMC.
  • Investor subscriptions are allocated into a Murabaha facility.
  • Shariah advisory firms (e.g., Amanie Advisors) oversee compliance.

2. Two-Step Option for Borrowers Without Shariah Boards

  • Proceeds are routed to a dedicated Murabaha SPV for ring-fenced compliance.
  • Ensures segregation, auditability, and institutional transparency.

3. Execution of Murabaha

  • Commodity trades via approved platforms (e.g., Sabiq’s Core Murabaha Online) underpin the facility.
  • The company purchases halal assets at a markup with deferred payment terms.

4. Repayment & Distribution

  • Issuers repay from underlying revenues (e.g., solar energy sales).
  • Investors receive predictable “profit” distributions, structured as AMC coupons.

5. Maturity & Extensions

  • Principal returned at maturity; extensions facilitated through refreshed documentation.

Simplified Cash Flow:

Entity Flow Description Example Amount
AMC Investors Invest in AMC USD 1M
Shariah SPV Transfers to Murabaha SPV (if used) USD 1M
Murabaha SPV Grants facility to Company USD 1M (net)
Company Repays with profit USD 1.1M
Murabaha SPV Upstream to Shariah SPV USD 1.1M
Shariah SPV Distributes to Investors USD 1.1M

Governance, Oversight, and Risk Management

Institutional investors increasingly demand traceability of cash flows and independent certification. Here, governance frameworks are non-negotiable:

  • Independent Shariah Boards: Certification of structures and ongoing monitoring.
  • Commodity Audit Trails: Full documentation of trades and settlements.
  • Legal Robustness: SPVs established in recognised jurisdictions (Jersey, Cayman).
  • Swiss Law Protection: Liability limits and dispute resolution under Zurich jurisdiction.

This emphasis on fiduciary duty and compliance makes AMCs credible to family offices, pension funds, and Islamic institutions seeking scalable exposure.

The Kingsbury & Partners x ISP Group Partnership

 The collaboration between Kingsbury & Partners and ISP Group brings together the full spectrum of capabilities required to issue Shariah-compliant AMCs under an institutional framework. Collectively, we provide structuring expertise, governance oversight, and capital markets infrastructure—delivering an end-to-end wrapper that takes issuances from concept to market.

Together, the partnership delivers a comprehensive issuance wrapper covering:

  • Structuring & Design – Tailoring Murabaha-based AMC frameworks to issuer requirements.
  • Shariah Oversight – Coordinating with independent boards (e.g., Amanie) for certification and ongoing monitoring.
  • SPV Setup & Governance – Establishing ring-fenced, compliant vehicles in recognised jurisdictions such as Jersey or Cayman.
  • Commodity Execution – Facilitating trades via approved platforms (e.g., Sabiq’s Core Murabaha Online) to underpin fixed-profit flows.
  • Market Launch – Issuance under a Swiss ISIN with full institutional infrastructure, ready for integration into global custody and settlement systems.

Together, Kingsbury & Partners and ISP Group deliver the discipline, transparency, and institutional-grade governance that both issuers and investors expect—enabling Shariah-compliant capital raising to be executed efficiently and credibly at scale.

Conclusion: Shaping the Future of Shariah-Compliant Capital

Shariah-compliant AMCs represent a significant evolution in the way capital can be raised and deployed across the GCC. By combining Islamic finance principles with the efficiency of structured products, they open the door to scalable, asset-backed financing solutions that meet both issuer requirements and investor mandates.

Through our partnership, Kingsbury & Partners and ISP Group provide the governance, structuring, and capital markets infrastructure needed to deliver these issuances with speed, transparency, and institutional credibility. In a market where the demand for compliant yield continues to grow, AMCs offer a disciplined pathway for “fixed-profit” financing that is fully aligned with both Shariah principles and institutional investment standards.