Why is a Hartford law firm concentrating on developing its Islam finance and investment practice?
With Islam generally considered the world’s fastest growing religion, financial and legal institutions worldwide are creating Islamic alternatives to address their rising needs. The firm was seeking out areas in which it could bring to bear its capabilities in finance, real estate and private equity and extend them into other realms, including cross-border transactions. At the same time, I crossed paths with some of Murtha’s lawyers, and we brought our skills and experiences together to build one of the few groups devoted to Islamic finance among U.S. law firms. Our place in the middle market generally as well as Hartford, Boston and Stamford is advantageous from the point of view of accessing major East Coast markets and delivering more personable, efficient legal services than our mega competitors.
What are some of the differences between American and Islamic banking and finance?
My experience and education has shown that most of the relevant Islamic principles are not inconsistent with U.S. laws. One difference has to do with ethical investing where investors look to avoid certain sin sectors such as alcohol, gambling and tobacco and to contribute positively to the community and to the earth. The most conspicuous difference is probably the prohibition of earning or paying any benefit above principal in a loan transaction.
Who are the company’s typical clients in this practice?
Many of our clients are financial institutions, investment banks and family offices that seek to operate their businesses consistent with Islamic principles. Many of them are located abroad and others are scattered across the United States, including here in New England. These may be parties looking to provide financing, in the form of equity or debt, buy businesses or acquire real estate. And yet others look to us to structure and document novel banking products.
You’ve recently been named partner and co-chair of the firm’s growing Islamic Finance & Investment practice. What will you do in your new role?
As it was, I was rare among associates in that I was tasked with significant responsibilities in building a practice group and engaging in business development and client management. I travel regularly to the Middle East and within the United States to maintain our relationships and to build new ones as well. This is a fast growing niche of international finance, and we’re involved in contributing to educating financial institutions and investors as well as regulators.
