Islamic Real Estate Finance 2004 Keith Leach Senior Manager ABC International Bank PLC
Islamic Real Estate Finance 2004 The UK Market At least 16 institutions Ahli United Bank, HSBC, UNB, Islamic House of Britain At least 7 UK Banks At least 5 UK Building Societies
Islamic Retail Banking in Non-Muslim Countries Muslims in the UK Total Muslim Population: 1.8 Million Pakistani Origin: 43% Bangladeshi Origin: 17% Indian Origin: 9% Others: 31%
Islamic Retail Banking in Non-Muslim Countries Market Preference Only Sharia’a Products Prefer Sharia’a Products Cheapest most Convenient Products
Islamic Retail Banking in Non-Muslim Countries Heightened awareness of Islamic Banking Increased demand for Islamic products More Islamic banks and finance companies Increased product development and sophistication Increased customer satisfaction More customers
Islamic Real Estate Finance 2004 The products available now Murabaha Ijara Diminishing Musharaka & Ijara Istisna
Islamic Real Estate Finance 2004 Residential Development Finance Istisna finance –Financier contracts with contractor –Financier contracts with customer –Difference the financier’s profit
Islamic Real Estate Finance 2004 The Summary Educate and build awareness Regulatory rules/laws the biggest hurdle New products needed to move things forward Increasing European cross border legislation likely to present further barriers Act now!
Islamic Real Estate Finance 2004 Keith Leach Senior Manager ABC International Bank PLC