Yearly growth for Islamic mortgages

Mon, 31 Oct 2011
The business of Islamic mortgages is one on an upward trend that is rising across the globe on a yearly basis.

According to ABC News, increasing numbers are turning to this approach in an effort to get around rules preventing Muslims accessing home loans or credit cards.

This is because sharia law does not allow individuals of this religious persuasion to pay or charge interest on financial products, meaning businesses are increasingly looking for ways to circle these rules without breaching them.

Islamic mortgages - which see a bank enter a contract to buy a property from a vendor, before the lender sells this on to the purchaser at a higher price paid in equal instalments over a fixed term - are therefore being used on a more frequent basis as people look to enter the property market.

The news provider noted this business is growing around the world, with most of the firms who provide such services being based in Dubai.

This comes after R Lakshmanan, chief executive officer of Sakana Holistic Housing Solutions in Bahrain, claimed Gulf Cooperation Council countries are helping to push forward an increase in the Islamic mortgages market.
Salaam-u-Allaikum
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