PT  - JOURNAL ARTICLE
AU  - Jason West
TI  - Structured Islamic Finance Options for the<br/>Resources Sector
AID  - 10.3905/jsf.2012.18.3.091
DP  - 2012 Oct 31
TA  - The Journal of Structured Finance
PG  - 91--101
VI  - 18
IP  - 3
4099  - https://pm-research.com/content/18/3/91.short
4100  - https://pm-research.com/content/18/3/91.full
AB  - The investment profile and particularly the horizon of traditional debt financing for projects seldom matches the returns on assets, particularly in the resources and infrastructure sectors, where assets have a lengthy construction phase before realizing a return. This mismatch in investment duration and risk–return profile is a key weakness of the Western approach to limited-recourse borrowing under project financing conventions. The motives underlying Islamic finance differ, however, from the Western approach permittinglonger-term investments and profit-sharing arrangements,subject to the strict practice of Shariáh law. This article highlights the advantages of Islamic investment practices over traditional approaches in project financing, which can potentially fill a significant gap in funding options for firms in the global resources sector.TOPICS: Developed, options, fixed income and structured finance