Islamabad: The Islamic Development Bank Institute, a member of the Islamic Development Bank Group, and Spain's IE University have launched a cooperation initiative to design contract models aligned with European legal frameworks and Islamic finance principles, aiming to facilitate startup investment.
According to Saudi Press Agency, this cooperation focuses on identifying and designing financing instruments that meet the needs of startup projects within civil law systems. It combines research and comparative legal analysis with contract design to review existing risk-sharing financing models, assess their compliance with Islamic finance principles, and examine the feasibility of adapting similar mechanisms to the Spanish legal framework.
The initiative will seek to develop a set of Shariah-compliant risk-sharing contract models that fully adhere to Spanish law and European Union law, ensuring their legal enforceability and economic efficiency. It will also focus on their ease of adaptation for use across all European Union member states and, more importantly, within non-European civil law systems, including North African and Gulf countries.