Islamic finance to contribute to mortgage provision

Mon, 23 Jan 2012
The Islamic finance industry in Saudi Arabia may contribute significantly to the provision of mortgage or housing finance in the near future.

Arab News reports that the sector is also likely to play a big role in housing development.

Islamic mortgages may therefore become an increasingly important part of the financial sector in the country in years to come.

According to the news provider, it is also anticipated that the Islamic finance industry will contribute to the funding of small and medium-sized enterprises in the nation - a move that should serve to create greater employment opportunities, especially for young people.

In addition, the sector is to bolster funding infrastructure and other programmes, including those carried out through public private financing.

Saudi corporates will also be assisted by Islamic finance to diversify the sources from which it receives its funding, while raising money through the capital markets.

Earlier in the month, Walid Hejazi, associate professor of international business in the Rotman School of Management at the University of Toronto, suggested the appeal of Islamic mortgages has increased as a result of the global economic downturn.
Salaam-u-Allaikum
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