• Part 3 Part 3 Specified Investments

    • 84. Investments: general

      The following kinds of investment are specified for the purposes of paragraph 2 of this Schedule.

      Amended on (13 January, 2020).

    • 85. Deposits

      (1) A Deposit is a sum of money paid on terms —
      (a) under which it will be repaid, with or without interest or a premium, and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it; and
      (b) which is not referable to the provision of property (other than currency) or services or the giving of security.
      (2) Money is paid on terms which are referable to the provision of property or services or the giving of security if —
      (a) it is paid by way of advance or part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services are not in fact sold, hired or otherwise provided;
      (b) it is paid by way of security for the performance of a contract or by way of security in respect of loss which may result from the non-performance of a contract; or
      (c) without prejudice to sub-paragraph (b), it is paid by way of security for the delivery up of property, whether in a particular state of repair or otherwise.

    • 86. Contracts of Insurance

      Rights under a Contract of Insurance.

    • 87. Shares etc.

      Shares or stock in the share capital of —

      (a) any Body Corporate (other than an open-ended investment company); and
      (b) any unincorporated body constituted under the law of a country, territory or jurisdiction outside the Abu Dhabi Global Market.

    • 88. Instruments creating or acknowledging indebtedness

      (1) Subject to sub-paragraph (2), such of the following as do not fall within paragraph 90 —
      (a) debentures;
      (b) debenture stock;
      (c) loan stock;
      (d) bonds;
      (e) certificates of deposit;
      (f) any other instrument creating or acknowledging indebtedness.
      (2) If and to the extent that they would otherwise fall within sub-paragraph (1), there are excluded from that sub-paragraph —
      (a) an instrument acknowledging or creating indebtedness for, or for money borrowed to defray, the consideration payable under a contract for the supply of goods or services;
      (b) a cheque or other bill of exchange, a banker's draft or a letter of credit (but not a bill of exchange accepted by a banker);
      (c) a banknote, a statement showing a balance on a current, deposit or savings account or a lease or other disposition of property; and
      (d) a Contract of Insurance;
      (3) An instrument excluded from sub-paragraph (1) of paragraph 90 by sub-paragraph (2)(b) of that paragraph is not thereby to be taken to fall within sub-paragraph (1) of this paragraph.

    • 89. Sukuk

      (1) Rights under a Sukuk, to the extent that they do not fall within paragraph 88 or 90.
      (2) For the purposes of this paragraph, arrangements constitute a Sukuk if —
      (a) the arrangements provide for a person (the "Sukuk-holder") to pay a sum of money (the "capital") to another (the "Sukuk-issuer");
      (b) the arrangements identify assets, or a class of assets, which the Sukuk-issuer will acquire for the purpose of generating income or gains directly or indirectly (the "Sukuk assets");
      (c) the arrangements provide that the Sukuk represent an undivided beneficial ownership in the Sukuk assets;
      (d) the arrangements specify a period at the end of which they cease to have effect (the "Sukuk term");
      (e) the Sukuk-issuer undertakes under the arrangements —
      (i) to make a repayment in respect of the capital (the "redemption payment") to the Sukuk-holder during or at the end of the Sukuk term (whether or not in instalments); and
      (ii) to pay to the Sukuk-holder other payments on one or more occasions during or at the end of the Sukuk term (the "profit payments");
      (f) the amount of the profit payments does not exceed an amount which would, at the time at which the Sukuk is issued, be a reasonable commercial return on a loan of the capital;
      (g) the arrangements are a Financial Instrument admitted to trading on a Recognised Investment Exchange; and
      (h) the Sukuk has received a fatwa as to compliance with Shari'a from an appropriately qualified Shari'a Supervisory Board.
      (3) For the purposes of sub-paragraph (2) —
      (a) the Sukuk-Issuer may acquire the Sukuk assets before or after the arrangements take effect;
      (b) the Sukuk assets may be property of any kind, including rights in relation to property owned by someone other than the Sukuk-issuer;
      (c) the identification of the Sukuk assets mentioned in sub-paragraph (2)(b) and the undertakings mentioned in sub-paragraph (2)(e) may (but need not) be described as, or accompanied by a document described as, a declaration of trust;
      (d) the reference to a period in sub-paragraph (2)(d) includes any period specified to end upon the redemption of the Sukuk by the Sukuk-issuer;
      (e) the Sukuk-holder may (but need not) be entitled under the arrangements to terminate them, or participate in terminating them, before the end of the Sukuk term;
      (f) the amount of the profit payments may be —
      (i) fixed at the beginning of the Sukuk term;
      (ii) determined wholly or partly by reference to the value of or income generated by the Sukuk assets; or
      (iii) determined in some other way;
      (g) if the amount of the profit payments is not fixed at the beginning of the Sukuk term, the reference in sub-paragraph (2)(f) to the amount of the profit payments is a reference to the maximum amount of the profit payments;
      (h) the amount of the redemption payment may (but need not) be subject to reduction in the event of a fall in the value of the bond assets or in the rate of income generated by them; and
      (i) entitlement to the redemption payment may (but need not) be capable of being satisfied (whether or not at the option of the Sukuk-issuer or the Sukuk-holder) by the issue or transfer of Shares or other Financial Instruments.
      (4) An instrument excluded from sub-paragraph (1) of paragraph 90 by sub-paragraph (2) of that paragraph is not thereby taken to fall within sub-paragraph (1) of this paragraph.

    • 90. Government and public Financial Instruments

      (1) Subject to sub-paragraph (2), loan stock, bonds and other instruments creating or acknowledging indebtedness, issued by or on behalf of any of the following —
      (a) the Board;
      (b) the government of any country, jurisdiction or territory outside the Abu Dhabi Global Market;
      (c) a local authority; or
      (d) a body the members of which comprise —
      (i) states or legal jurisdictions including the Abu Dhabi Global Market; or
      (ii) bodies whose members comprise states or legal jurisdictions including the Abu Dhabi Global Market.
      (2) Subject to sub-paragraph (3), there are excluded from sub-paragraph (1), so far as applicable, the instruments mentioned in paragraph 88(2)(a) to (d).
      (3) Sub-paragraph (2) does not exclude an instrument which meets the requirements set out in paragraph 89(2) (a) to (f).

    • 91. Instruments giving entitlements to investments

      (1) Warrants and other instruments entitling the holder to subscribe for any investment of the kind specified by paragraph 87, 88, 89 or 90.
      (2) It is immaterial whether the investment to which the entitlement relates is in existence or identifiable.
      (3) An investment of the kind specified by this paragraph is not to be regarded as falling within paragraph 94, 95 or 96.

    • 92. Certificates representing certain Financial Instruments

      (1) Subject to sub-paragraph (2), certificates or other instruments which confer contractual or property rights (other than rights consisting of an investment of the kind specified by paragraph 94) —
      (a) in respect of any investment of the kind specified by any of paragraphs 87 to 91, being an investment held by a person other than the person on whom the rights are conferred by the certificate or instrument; and
      (b) the transfer of which may be effected without the consent of that person.
      (2) There is excluded from sub-paragraph (1) any certificate or other instrument which confers rights in respect of two or more investments issued by different persons, or in respect of two or more different investments of the kind specified by paragraph 90 and issued by the same person.

    • 93. Units in a Collective Investment Fund

      Units in a Collective Investment Fund.

    • 94. Options

      (1) Options to acquire or dispose of —
      (a) a Financial Instrument (other than one of a kind specified by this paragraph);
      (b) currency of any country or territory;
      (c) a commodity of any kind;
      (d) a right to receive a Cash settlement, the value of which is determined by reference to —
      (i) the value or price of an index, interest rate or exchange rate; or
      (ii) any other rate or variable; or
      (e) an option to acquire or dispose of an investment of the kind specified by this paragraph by virtue of sub-paragraph (a), (b), (c) or (d).

    • 95. Futures

      (1) Subject to sub-paragraph (2), rights under a contract for the sale of a commodity or property of any other description under which delivery is to be made at a future date and at a price agreed on when the contract is made.
      (2) There are excluded from sub-paragraph (1) rights under any contract which is made for commercial and not investment purposes.
      (3) A contract is to be regarded as made for investment purposes if it is made or traded on a Recognised Investment Exchange, or is made otherwise than on a Recognised Investment Exchange but is expressed to be as traded on such an exchange or on the same terms as those on which an equivalent contract would be made on such an exchange.
      (4) A contract not falling within sub-paragraph (3) is to be regarded as made for commercial purposes if under the terms of the contract delivery is to be made within seven days, unless it can be shown that there existed an understanding that (notwithstanding the express terms of the contract) delivery would not be made within seven days.
      (5) The following are indications that a contract not falling within sub-paragraph (3) or (4) is made for commercial purposes and the absence of them is an indication that it is made for investment purposes —
      (a) one or more of the parties is a producer of the commodity or other property, or uses it in his business;
      (b) the seller delivers or intends to deliver the property or the purchaser takes or intends to take delivery of it.
      (6) It is an indication that a contract is made for commercial purposes that the prices, the lot, the delivery date or other terms are determined by the parties for the purposes of the particular contract and not by reference (or not solely by reference) to regularly published prices, to standard lots or delivery dates or to standard terms.
      (7) The following are indications that a contract is made for investment purposes —
      (a) it is expressed to be as traded on an investment exchange;
      (b) performance of the contract is ensured by an investment exchange or a clearing house;
      (c) there are arrangements for the payment or provision of margin.
      (8) For the purposes of sub-paragraph (1), a price is to be taken to be agreed on when a contract is made —
      (a) notwithstanding that it is left to be determined by reference to the price at which a contract is to be entered into on a market or exchange or could be entered into at a time and place specified in the contract; or
      (b) in a case where the contract is expressed to be by reference to a standard lot and quality, notwithstanding that provision is made for a variation in the price to take account of any variation in quantity or quality on delivery.

    • 96. Contracts for differences etc.

      (1) Subject to sub-paragraph (2), rights under —
      (a) a contract for differences; or
      (b) any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss by reference to fluctuations in —
      (i) the value or price of property of any description; or
      (ii) an index or other factor designated for that purpose in the contract.
      (2) There are excluded from sub-paragraph (1) —
      (a) rights under a contract if the parties intend that the profit is to be secured or the loss is to be avoided by one or more of the parties taking delivery of any property to which the contract relates;
      (b) rights under a contract under which money is received by way of deposit on terms that any interest or other return to be paid on the sum deposited will be calculated by reference to fluctuations in an index or other factor;
      (c) rights under a Contract of Insurance.

    • 97. Credit Agreement

      Rights under a Credit Agreement.

    • 98. Rights to or interests in investments

      (1) Subject to sub-paragraph (2), any right to or interest in anything which is specified by any other provision of this Part.
      (2) Sub-paragraph (1) does not include anything which is specified by any other provision of this Part.

    • 99. Shari'a-compliant Specified Investments

      Any investment specified in paragraphs 85 to 98 that complies with Shari'a.