Shariah Advisory on Islamic Financial Transactions and Dispute Settlement
A Shariah advisory opinion on a financial transaction sets out whether a contract or a financial act conforms to the rules of Islamic transactions jurisprudence — murabaha, ijarah, musharakah, mudarabah — together with its effect under Saudi law. We provide it to individuals and businesses in Jeddah through Ahmed Al Ghamdi, a licensed lawyer holding a fellowship as a Shariah consultant in Islamic financial transactions and dispute settlement.
The Shariah consultant fellowship is an academic qualification from the Saudi Scientific Judicial Association (Qadha), alongside the law practice and notarization licences published on our Licences page.
- One opinion covering both the Shariah ruling and the legal effect
- Drafting partnership, mudarabah, and settlement agreements
- Notarizing what results before a licensed notary
How the Opinion Is Prepared
- We receive the contract or a description of the transaction
- We define the scope and the documents needed
- We prepare the written opinion
- Notarization or negotiation where needed
Who Needs a Shariah Opinion on a Financial Transaction
We serve individuals and small to medium-sized businesses in the following situations.
Individuals Before Signing
Personal or real estate financing contracts: murabaha, ijarah ending in ownership, tawarruq.
Partners in a Venture
Anyone wanting a partnership or mudarabah contract that is sound both in Shariah and in law.
Parties to a Financial Dispute
Those who prefer settlement to litigation and need a notarized, enforceable agreement.
Endowments and Wills
Anyone arranging a waqf or a will within the limits of Shariah and the law.
What We Provide
Five core services covering both what comes before signing and what follows a dispute.
Financing Contract Review
- Reading the contract and setting out its terms, obligations, and penalties
- Explaining their Shariah and legal effect before you sign
Delivered as a written note
Partnership and Mudarabah Contracts
- Defining the capital and the work
- Profit sharing, loss bearing, and the exit mechanism
Drafted and reviewed
Settlement of Financial Disputes
- Managing the negotiation and drafting the settlement agreement
- Notarizing it and following up on performance
With notarization
Endowments and Wills
- Setting out the rules, drafting the documents, and notarizing them
With notarization
Written Shariah-Legal Opinion
- A signed memorandum setting out the ruling, the legal effect, and the alternatives
Signed and dated
What We Do and What We Do Not Do
We set the limits out before we begin, so expectations are accurate.
We are not a Shariah board for a financial institution and we do not issue general fatwas. We give a professional opinion on a specific transaction to the person who requested it, based on recognised jurisprudential standards and the Saudi laws in force. Where a question needs an official fatwa body, we say so.
A Shariah opinion does not replace a financial adviser or an accountant. We answer the question of the ruling and the legal effect, and leave the commercial merits to those who own them.
And where a transaction needs two opinions — a Shariah one and a tax one, for example — we tell you at the outset.
Why Al-Shatiri & Al-Ghamdi for Shariah Advisory
Ahmed Abdullah Al Ghamdi
He holds a fellowship as a Shariah consultant in Islamic financial transactions jurisprudence and dispute settlement from the Saudi Scientific Judicial Association (Qadha), and he is a licensed lawyer and a licensed notary. Combining the Shariah fellowship with the law practice and notarization licences is what makes it possible to issue a single opinion covering both the Shariah and the legal side, and then notarize the settlement or contract that results from it. The fellowship is an academic qualification from a scholarly association, not a government licence, and we describe it as such.
Shariah Fellowship
In Islamic financial transactions and dispute settlement — an academic qualification from a scholarly association, not a government licence.
Law Practice Licence
Setting out the legal effect, drafting the contracts, and representation where needed.
Three Steps to a Written Opinion
01 — Send the Document
A copy of the contract, or a description of the transaction or the dispute.
02 — Define the Scope
We set the scope of the opinion, any further documents needed, and the expected turnaround.
03 — The Written Opinion
You receive a written opinion, and we follow through on notarization or negotiation if you wish.
Common Questions About Shariah Advisory in Financial Transactions
What is the difference between a Shariah advisory opinion and a fatwa?
A fatwa is a statement of the general Shariah ruling issued by a mufti or the body competent to issue fatwas. A Shariah advisory opinion on a financial transaction is a professional opinion on a specific contract or transaction, setting out how far it conforms to the recognised jurisprudential rules — and with us it comes together with its effect under Saudi law and how to draft the contract soundly.
Does reviewing a financing contract change the bank’s terms?
Usually it does not change the template, but it lets you know your obligations precisely: the instalments, the penalties, early repayment, and what happens on default — and it surfaces any Shariah observations before you sign rather than after. It may also help you negotiate the terms that are open to change.
Is a notarized settlement agreement enforceable?
A settlement is a contract governed by the Civil Transactions Law, and notarizing it before a licensed notary gives it the evidentiary weight of a notarized instrument. How it is enforced on breach depends on the form of the agreement and the body that ratified it, which is why we draft it from the start in the form that makes enforcement easier, and explain the route to you before signing.
Do you provide the service to businesses?
Yes — to small and medium-sized businesses as well as individuals. Large financial institutions have in-house Shariah boards; our service is for those who need an independent opinion on a specific transaction, or the drafting of a partnership or settlement agreement.
Know the Ruling and the Effect Before You Sign
A Shariah and legal opinion before signing costs far less than a dispute afterwards. Send us a copy of the contract or a description of the transaction and we will define the scope of the opinion.
Official References
Civil Transactions Law
Bureau of Experts at the Council of Ministers — Royal Decree No. (M/191) dated 29/11/1444H
Law of Evidence
Bureau of Experts at the Council of Ministers — Royal Decree No. (M/43) dated 26/5/1443H
Companies Law
Bureau of Experts / Ministry of Commerce — Royal Decree No. (M/132) dated 1/12/1443H (in force 2023)
Related Services
Notarization Services in Jeddah
Settlements, declarations, and contracts before a licensed notary.
Company Formation and Conversion
Partner contracts, commercial register amendments, and company conversion.