Regulation
Counting down to 2028: preparing a lending book for a riba-free mandate
A deadline this specific is a product roadmap. Structures, documentation, accounting and disclosure all move together.
6 min read
Conversion is not a relabelling exercise. Each conventional structure has an Islamic counterpart with different ownership, risk and timing mechanics — and the ledger has to reflect them honestly for the treatment to hold.
Practically, that means asset-backed structures where title genuinely transfers, profit recognition that follows the underlying transaction, Shariah board review embedded in product governance, and disclosure that a customer can understand without a glossary.
Lenders that treat 2028 as a compliance date will convert late and expensively. Lenders that treat it as a design principle will have a cleaner product set, a broader addressable market and lower conversion risk long before the deadline.