How Rise Capital Delivers Shariah-Compliant Property Investments

Investing Without Interest: How Rise Capital Delivers Shariah-Compliant Property Investments

For decades, Islamic investors have faced a recurring challenge: how to participate in profitable, real estate-backed investments without engaging with interest (riba) or speculative debt structures.

At Rise Capital, we’ve built a purpose-driven solution. Our Shariah-compliant investment model removes senior debt entirely, replacing it with a transparent, asset-backed structure rooted in the principles of Islamic finance. The result? Fixed, secured returns — without interest, and without compromise.

What Makes the Model Shariah-Compliant?

Our investment structure is based on the Commodity Murabaha model, which is widely accepted by global Islamic scholars and Shariah boards. Here's how it works:

1. Asset-Backed Trade, Not a Loan
   Investors begin by purchasing commodities (e.g. metals) on the spot market.
   
   

2. Deferred Sale to the SPV
   Those commodities are then sold to a Rise Capital SPV (Special Purpose Vehicle) at a fixed, pre-agreed profit margin on deferred terms. This sale is not a loan; it’s a legitimate, asset-backed trade transaction.
   
   

3. Immediate On-Sale for Project Funding
   The SPV resells the metals immediately on the open market, converting them into cash, which is held in escrow and released in stages to fund a real property development project.
   
   

4. Profit Realised, Capital Secured
   Investors are paid back the deferred amount (cost + profit) over time. The return is fixed, transparent, and backed by a first legal charge over the property.
   
   

Security & Oversight

To further protect investors, Rise Capital integrates a professionally structured Security Agreement (Debenture). This gives investors:

• A first charge over the development property

• Security over bank accounts, contracts, insurance, and intellectual property

• Independent monitoring through a chartered surveyor to certify construction milestones
  
  

All security is held on behalf of investors by R.C Nominees Security Ltd (Company No. 16088585).

Who Designed the Structure?

The model was designed by Druces LLP, one of the UK’s leading law firms in Islamic finance. Rise Capital has submitted the structure to Khalij Group for Shariah review and certification.

Why This Matters

Traditional property investment structures often rely on high levels of bank debt, exposing both developers and investors to refinancing risk, interest rate volatility, and lender control. Our model removes those risks completely and replaces them with:

• Transparency

• Asset-backing

• Escrow control

• Shariah integrity
  
  

It’s a bold, investor-first model that aligns ethical values with commercial performance.

Want to Learn More?
Explore our current live opportunity, or get in touch for a walkthrough of how the model works in practice. This is real estate investing, reimagined for faith-based and ethically conscious investors alike.