IFR 6.11.5 IFR 6.11.5
Fund Managerof an Islamic REITmay borrow either directly or through its Special Purpose Vehicleup to 65% of the gross asset value of the Fundprovided that such borrowings are Shari'a compliant.
IFR 6.11.5 Guidance1. The gross asset value of a
Fundshould be calculated as the total value of the Fund Propertybased on the most recent valuation under CIR Rule 8.4.1(1), but without making the deductions provided for in the other paragraphs of that Rule.2. As there are no specific risks that arise by virtue of a Fundbeing an Islamic Fund, the prudential requirements that apply to a Category 3 firm as set out in the PIB module apply to such Fund Managers. However, if the underlying assets of the Fundare invested in financial products or instruments that are Islamic and have certain features which would raise any prudential risks, it is the responsibility of the Fund Managerto address such risks. The DFSA would provide any additional clarifications regarding such matters upon request.