DWS leads on sharia-compliant securitisation

Denton Wilde Sapte (DWS) has bagged a role on the first securitisation of sharia-compliant mortgage equivalents in the United Arab Emirates (UAE).

The DWS team, led by Islamic finance head Farmida Bi, advised the banks Standard Chartered Bank and Morgan Stanley, and investment company Emirates National Securitisation Company (ENSEC), on the $210m (£102m) securitisation for real estate provider Tamweel.

Bi said: “Property ownership is still very new in the UAE so this transaction, which will encourage progress in the secondary property market, is very important. The deal was also significant because it was rated and we feel this is important in making securitisation more common in the UAE.”

This transaction is the first residential financing securitisation to rely solely on the underlying assets. It is also multi-tranched.

The DWS partner on the deal Richard de Belder said: “ENSEC is trying to introduce securitisation into the Middle Eastern markets and we’re delighted to have worked on this deal, which opens further possibilities for sharia-compliant fundraising.”

Allen & Overy, led by partner Salim Nasoo, advised Tamweel, while Linklaters advised the company trustees.