The Equate Project

Abstract

With more than one billion Muslims living primarily in regions with enormous infrastructure needs - the Middle East, Asia, and Africa - there is a growing need to understand Islamic culture, financial systems, and commercial practices. Toward that end, this case study is an attempt to explain the basic tenets of Islamic finance as they pertain to project finance and infrastructure development. The Equate petrochemical project, a joint venture between Union Carbide and a subsidiary of Kuwait's National Oil Company, shows that co-financed structures can work and creates a template for future deals across the Islamic world.