Permissibility of Syndicated Financing
Permissibility of syndicated financing is derived from Musharakah, which encounters no Shariah restriction.

Projects Financed Through Syndication
The ruling that syndicated financing should be directed only towards activities that do not entail dealing in a Shariah-impermissible commodity or service, is dictated by the need to abide by the directives outlined in the Holy Qur`an verses and the noble Hadith of the Prophet (peace be upon him). These divine sources prohibit usury, alcoholic drinks, drugs, gambling, pork, illegitimate carcasses, prostitution, nightclubs, statues, etc, as
well as impermissible acts like deception, bribe, cheating in weight and measurement, and all types of prohibited sales, etc.

« Appendix A - Brief History of the Preparation of the Standard Combination of Contracts: Scope & Shariah Ruling »