Next year could be big for Islamic mortgages

Fri, 23 Dec 2011
The popularity of Islamic mortgages could be set to rise next year as a number of Islamic banks focus their attention on the idea of consolidation.

Business Times has noted this sort of finance is both a niche industry and an embryonic sector, managing to survive setbacks such as the sukuk default of 2009.

The news provider observed industry commentators - such as Standard and Poor's - are forecasting the field will thrive in the near future, with its valuation tipped to reach $2 billion (£1.28 billion) soon.

It stated: "When the central bank of Bahrain encourages consolidation of Islamic banks in its home country, it may be just the wake-up call for the industry to direct the conversation towards size."

This type of finance industry serves as a sub-eco system of the global economy and its capital markets, with renewed focus being placed on the base countries of Islamic banks.

And the options appear to be gaining in favour in the UK, as the Manchester Evening News recently reported that Russell Jones and Walker has established a sharia law team to deal with a rise in demand for products such as Islamic mortgages.
Salaam-u-Allaikum
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