Called the Green Energy EIS, the scheme will enable investors to participate in a UK-based solar photovoltaic generation plant that creates electricity. The project is backed by the UK government and will generate revenue from renewable obligation certificates and the sale of electricity to the national grid.
While investors will also benefit from the tax-efficient structure of an EIS, the scheme will also use a specialist Islamic finance structure known as a Wakala, whereby an agent is appointed by investors to manage and run the investment on their behalf, without using conventional interest-bearing debts within the company.
The SRB will carry out yearly audits of the company’s activities to ensure that it is operating according to Sharia law. Yasser Dahlawi, chief executive of the SRB, said: “This project will allow both Islamic investors and consumers to play a role in a greener environment while, offering cutting-edge Islamic investment opportunities.”
Faizal Karbani, chief executive of London-based advisory firm Simply Sharia, said: “This will be the first certified Sharia-compliant green energy EIS offered to UK investors and we think the structure of the investment fits well with the values and principles of Sharia.”