Gulf countries set to drive Islamic mortgage market

Mon, 24 Oct 2011
Gulf Cooperation Council (GCC) countries are set to drive forward an uptake in the Islamic mortgages market.

This is the suggestion of R Lakshmanan, chief executive officer of Sakana Holistic Housing Solutions in Bahrain - which is a partnership between the Bank of Bahrain and Kuwait and Shamil Bank - who told Arab News that the development of home loan finance is vital to the growth of property development in the region.

The industry figure stated: "Islamic mortgage finance is set to grow at varying levels in the GCC markets as compared to previous years."

With 65 per cent of the population in GCC nations being under the age of 30, demand for affordable dwellings is set to rocket in the coming years.

Mr Lakshmanan explained Qatar and Saudi Arabia are likely to see growth of a higher scale than other countries, as the two nations are currently witnessing a marked increase in wider economic activity.

A recent licensing of three Islamic banks in Oman will also see the Islamic mortgage market in the sultanate experience a significant upward shift, the expert went on to point out.
Salaam-u-Allaikum
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