Owing to the risks outlined in Paragraph CA-9.1.1, real estate investment activities are suitable for an Islamic bank licensee only on a very limited scale and under restrictive conditions designed to control the various risks posed to the Islamic bank licensee and its UPSIAs. Islamic bank licensees must demarcate clearly their real estate exposures into financing and investment categories. The CBB requires licensees to report real estate exposures to the CBB.
January 2015