1. From Paralegal to Partner
Your journey from a paralegal at Freemans Solicitors to becoming a Partner at Druces LLP is impressive. What were the key milestones or decisions that shaped your career progression? What motivated you to specialize in Islamic finance within the broader field of real estate finance?
I was raised in a very conservative Islamic environment primarily driven by my mother who wanted us to have a strong religious foundation/morality but also to achieve the best in western education and schooling. The prohibition of interest was something which was engrained within our family practices from the outset as well as ensuring fairness in all business dealings.
The key milestone of when I decided to turn my back on conventional finance and focus solely on Islamic finance, was when I attended an Al-Kauthar course by the world-renowned Sheikh Tawfique Chowdhury; he gave a stern warning to all those working in riba based finance and gave a strong encouragement to engage with Islamic Finance. I left that course realizing that I could no longer work with traditional finance and made an intention to go into an Islamic finance team. At that point in time, Birmingham was booming and seemed to be focal point for Islamic Finance and so I departed London for a short while and spent two years enhancing my skillset in a leading national firm after which I transitioned back to London and gradually pivoted myself to where I am today.
My motivation was simple — I have always wanted to work in an environment which would further the objectives of Islam. I initially thought my pathway was to specialise in Human Rights but I received a lukewarm welcome when I tried to do that and realized this was perhaps not for me.
2. Building the Islamic Finance Practice
You’ve led Islamic Finance offerings at Hill Dickinson and now serve as Head of Islamic Finance at Druces. How do you build and grow an Islamic finance legal practice within a mainstream London law firm? What makes Druces’ approach unique?
There is no shortcut to hard work. When I first started my journey, I had no clients, unknown to most clients, faced fierce competition from firms which had been doing this for decades more than me and I worked in a firm which had little knowledge of Islamic Finance. I spent the first 8 months outdoors, networking, forging new relationships, increasing market knowledge and building a brand. Law firms are businesses and the key to introducing a new area of law or “product” is to demonstrate the business case and have a solid business plan as to how we would penetrate the market.
Beyond the “hard work”, I would say it also requires a heavy reliance on Allah and lots of patience. I believe in what we are building and my passion for Islamic Finance allows me to continue to strive and preserve; as the old saying goes, if you enjoy what you do; you never work a day in your life. I honestly do not see the work that I do as work.
When we started this journey, we want to do something different in the market to service Islamic finance. There has been growing discontentment in the industry and Islamic finance has become the black sheep. This disturbed me and I felt that we needed to do better for the industry. I believe the way in which we approach clients and cases is with more authenticity and to apply Islamic principles not only on the underlying documents, but also in our practices and how we deal with one another.
3. Real Estate Finance vs. Islamic Finance
Your expertise spans both conventional real estate finance and Islamic finance. In practice, what are the most significant structural differences between conventional real estate financing and its Shariah-compliant equivalents? What challenges arise when structuring Islamic real estate transactions?
The key objectives for Islamic finance is to allow trade but prohibit unjust practices and oppression. The prohibition of Riba being a component of Islamic finance. This is at stark contrast with traditional/conventional finance which though is based on fairness, will usually only govern process and form as opposed to dictate substance. Practically, this presents a challenge when trying to apply Islamic finance into an English legal system as you are effectively navigating English law to make it compliant with shariah standards. Thankfully, modern Islamic finance has been around for circa 50+ years and shariah scholars have had time to create innovative ways to navigate around complex UK tax law and regulation.
4. The London Islamic Finance Market
London is a major global hub for Islamic finance despite being in a Muslim-minority country. How do you assess the current state of the Islamic finance legal market in London? What opportunities and challenges do you see for growth in the UK market?
I think the fact that the UK is a Muslim-minority country is somewhat of a red herring. Several Islamic banks have reported that their customer base is mixed with both Muslims and non-Muslims. The key to why Islamic finance has thrived is nothing to do with population but rather the service levels, speed and these days technology is playing a huge factor. London is a major city and has always been seen as a key hub for investment. With the current global uncertainties, investment into the UK continues to be an attractive option for foreign and domestic investments, some of which are increasingly looking at ethical forms of investment.
The opportunity in the UK is that it is generally stable politically with a strong rule of law. The UK Land Registry, for example is amongst the most secure in the world, in my view. UK has some of the best education establishments in the world and this continues to create opportunities for the student housing sector not to mention people who continue to live and work in the UK. That, coupled with numerous real estate opportunities in the UK ripe for acquisitions, developments and generally good yields makes the UK a continued good place for investment.
The challenges for the UK will always be that there are other jurisdictions offering very inflated returns and of course the continuing changes to tax and regulatory law which investors have been the first to complain about.
5. Working with Banks and Lenders
Your experience includes acting for banks and lenders on residential, commercial, mixed-use, and development finance. What are the most common legal issues or concerns that banks have when structuring Islamic finance products compared to conventional ones? How do you address them?
The most common legal issues are often nothing to do with Islamic finance at all and often to do with the underlying property due diligence. Sometimes there is a Diminishing Musharakah structure involved and there is a leaseback involved. This can cause issues if the obligors lawyers have not fully appreciate the structure and made sure that the transaction is capable of being structured in that way.
6. Islamic vs. Conventional Real Estate Transactions
From a legal and documentation standpoint, what is the most misunderstood aspect of Islamic real estate finance among conventional property lawyers? How do you bridge the knowledge gap when working with colleagues or counterparties unfamiliar with Shariah-compliant structures?
The most common misunderstood aspect of Islamic Finance is that most people seem to think just because at the end it achieves the same result, this automatically makes it impermissible. This is the wrong way of looking at it. It is similar to saying a halal cheeseburger is the same as the haram one because both taste and look the same. The purpose of Islamic finance in all its structures and technicalities and ultimately effort that it is put in, is to do our best to honor what Allah has decreed with respect to trade. Are there faults in Islamic finance, of course. Can we do better, no doubt. But in order to do better, we must continue supporting what we currently have and then bring about the innovation.
In terms of bridging the cap, there is no single answer to this. I have tried my best to attend Q&A sessions on live tv, speak at conferences and seminars and wherever else I can.
7. Shariah Compliance and English Law
You practice in the UK where English law governs contracts. How do you balance the requirements of English law with Shariah compliance? Are there areas where these two legal frameworks conflict, and if so, how do you navigate such situations?
We are taught in our tradition to fear Allah as much as you can. In practice and in daily social dealings, this means that we much strive to do as much as we can in all our practices. This extends to the work we do in Islamic Finance too.
On the plus side, English law was influenced and developed from roman canonical law. This means many of the legal principles came from religious scriptures which becomes helpful when considering Islamic finance is based on shariah. The conflicts usually arise when trying to navigate English regulation and thinking about consumer protection which is not always compatible with Islamic finance given the industry is built around insurance. When navigating these tricky scenarios we often need to defer to scholars and shariah supervisory bodies who will pierce the veil of what is trying to be achieved and balancing that with what is being required under English law. We will usually work closely with the shariah bodies to devise ways under English law which can meet those strict shariah requirements.
8. Skills Beyond Law: Data Analysis and Intellectual Property
Your profile highlights Data Analysis and Intellectual Property as top skills. How do these skills complement your Islamic finance legal practice? In what ways have they enhanced your ability to serve clients?
Prior to becoming a lawyer, I worked with data managers or process improvement specialists whose role it was to look at mass data in innovative ways and develop processes and tools in hope that we may use the data to form better systems. Intellectual Property is another area of fascination, and I studied IP both in undergrad and postgrad with one of the leading judges in this area.
These skills enhance by ability as nearly all of my clients deal with data and also sometimes have IP requirement issues. Part of supporting my clients is not only to support them in areas of Islamic Finance but to be able to support their entire operation and business.
9. The Role of Education and Early Career
Before becoming a solicitor, you worked as an Executive Officer at Westminster Academy and as a Paralegal. How did these early experiences shape your legal career? What transferable skills did you gain that continue to serve you today?
During my time at Westminster Academy I was not actually a paralegal. My role as Executive Offer included being responsible for extra-curricular activities, educational visits, running the internship programme and I also ran a literacy course of students aged 12 and over but who were illiterate.
I gained numerous skills there including people management, data analysis, team working and importantly how to impart knowledge to someone. I am currently the Training Principal at Druces and so my role is now to oversee all trainees and their development.
10. Advice for Aspiring Islamic Finance Lawyers
For someone pursuing a career in Islamic finance law in the UK or Europe, what advice would you give? What areas of law should they master, and what professional development steps should they prioritize to build a successful practice in this niche field?
There are predominantly two entry points to becoming an Islamic finance lawyer: Banking or Real Estate. Those who are starting their journey, the first point is to becoming a lawyer and becoming a very good lawyer. That is a very difficult task in and of itself and not to be taken lightly. Once you have accomplished these and developed very solid skills, you can look at specializing in Islamic Finance. It is not glamourous and not always easy to break into; it takes a lot of dedication and passion to be successful and personal sacrifice.