Sokouk Al-Intifaa and the Securitization Market. By Meshal Kh. Al-Ameri Munshaat Real Estate Projects Co. June 2004

 Comprehensiveness  Flexibility  Disciplined criteria  Ethical Islamic Economy – Characteristics

 Significant growth  Adaptability to current market trends.  high growth rate reaching 15% p.a.  market size of about US$630 Billion Islamic Economy – Market Size

 Industry products and offerings are gaining the trust very rapidly.  Non Muslims accepted Islamic Structured Products.  Market growth acceded Product growth rate. Islamic Economy – Over View

Recent Developments  2001 Bahrain Monetary Agency- BMA issued its first Sokouk  Government of Qatar issue of US$700 million Sokouk  Immar US$50 Milion.  Tabreed issue. US$ 100 Million Islamic Economy – (Securitization)

“a device of structured financing where a pool of assets cash flows over time,are transferred to investors through a mean of ownership of these Assets, either with or without the support of further collaterals” Islamic Economy – Sokouk Basic Definition

Islamic Economy – Receivables distribution Source :- Capital Intelligence 2001

 Specialized International Real Estate Investment Company.  Dedications Structure and develop Real Estate instruments that are Sharia compliant.  First to Offer the concept of “Sokouk Al- Intifa’a”. Munshaat Real Estate Projects – Mission

 A Blend of financial engineering combined with Real Estate Assets  derivative instrument of normal Sokouk  issuer disintegrate its right of use of identifiable asset over a identifiable period of time into specific units (Sokouk Al-Intifa'a) and transfer these rights to buyers (Sokouk Holders).  Holders of the Sokouk will in turn have the right to benefit from their these Sokouks by utalization, investment, or selling them to others. Sokouk Al-Intifa’a – Definition

 Sokouk Al-Intifa’a is a blend of two forces:  structured finance and;  Real estate Assets.  Sokouk Al-Intifa’a is a structured Instrument: Security is not the issuer of the Sokouk, but in the specific real estate asset or cash flows of such an asset. Sokouk Al-Intifa’a – Definition

 Sokouk al-Intifa’a is a product of multiple usage.  Can be used as a raw components to develop financial instruments around it.  Can be invested with no cape on returns  Can be sold with upside potential. Sokouk Al-Intifa’a – Definition

 Sokouk Al-Intifa’a is a way for commoditization.  Sokouk Al-Intifa’a is a product for integration.  Sokouk Al-Intifa’a is a product of de- construction of a real estate asset components. Sokouk Al-Intifa’a – Definition from financial Percpective

It is a legal deed of a lease hold/ownership right of accommodation, designed to be a long term lease hold instrument for end users without need to the full legal ownership of a Real-Estate. It is tailor designed product to the need and demand of different kinds of end users in different markets. It is a retail consumer product for end users as well as an investment instrument for intermediaries and investors. It is a strategic instrument with a good potential downstream business. It is designed to perform in accordance with Islamic Sharia principles. It offers a suitable alternative to conventional ownership to users of properties mostly of business and touristic nature. Sokouk Al-Intifa’a – Features

Advantages of Sokouk Al-Intifa’a Scheme:- a) Guaranteed Accommodation b) Effective Utilization c) Flexibility in Use d) Re-sale Option d) Genuine Saving e) Fixed Cost f) Sub-lease Option Sokouk Al-Intifa’a – End User Advantages

 Marketability  Merchantable quality  Wide Distribution Sokouk Al-Intifa’a – Financial Institutions Advantages

 Promotes savings  Reduces costs  Diversifies risks  Focuses on use of resources, and not their ownership Economic Impact of Sokouk Al-Intifa’a

 International Sales and Marketing. (Retail Customers)  Customer services centers.  Facility Management through international Hotel Operators.  Exchange Topology to enable trading and exchange of Sokouk. Sokouk Al-Intifa’a – Infrastructure Support

For more information or to get a copy of this presentation go to Contact Details Meshal Kh. Al-Ameri Tel (965) Fax (965)

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