To help Muslims buy home while adhering to their faith, a new Albertan finance group has developed a lending program that complies with Islamic law.
The Edmonton-based Canadian Halal Financial Corporation was created last December to work as a partner in home buying while charging fees to maintain profitability, CBC reported.
📚 Read Also: What is the Difference Between Islamic Loan and Riba?
“Having the ability to be able to fulfil our faith and also invest in a home for the families is great,” said Blanca Lima, who deals with applications as part of the Al Rashid Mosque’s monitoring of the program.
“Inshallah, in the future, I would love to use this service for me and my family.”
Serving Alberta
Operating only within Alberta, the arrangement was created in consultation with scholars and lawyers to ensure compliance with both Islamic practice and Canadian law.
“Everyone was working for the past two years around the clock to finally bring a product that is Islamic compliant and at the same time that protects the investor and our Muslim clients,” according to Imam Mahmoud Omar of Al Rashid.
Each transaction is reviewed by the Al Rashid Fatwa committee before funding occurs.
Omar said similar programs exist in other parts of Canada but within Alberta they have not had the same approvals and strict oversight from Muslim leaders.
“I’ve been renting for as far as I remember,” Omar said.
“Finally, I can breathe and I can enjoy and I can say, ‘You know what? Now I can own my own house, keep my faith, and I do not have to get involved with riba, with interest.’”
Islamic finance has grown substantially in recent decades across the world, becoming one of the fastest growing financial industries.
Today, it has global assets exceeding $2 trillion and expected to reach $3.8 trillion by 2023.
Sharia-compliant finance differs from conventional banking in key ways, the most notable being a prohibition on charging interest and investing in ethically compliant companies.
Islamic banks and finance institutions cannot receive or provide funds for anything involving alcohol, gambling, pornography, tobacco, weapons or pork.
Read Original Report Here By About Islam
