CA-9.1.3

Islamic bank licensees can engage in indirect real estate activities where real estate business is conducted by separate entities. Such exposure can take a number of forms. For example, an Islamic bank licensee can: (a) be involved in real estate activities through a joint venture or equity participation with a property development company; (b) establish a real estate subsidiary to carry out related commercial activities; or (c) accept real estate as collateral against its financing to the customers.