Posted by: islamicfinancingnews | November 23, 2012

Global market for Islamic mortgages growing

Studies indicate the global market for Islamic mortgages is set to climb significantly according to a recent article from the CPI Financial website which reports on the current economic situation throughout the Middle East region.

One example of this trend is the response by The Islamic banking department of the Commercial Bank of Dubai (CBD) to offer new and improved Ijara home products to meet the growing demand for Shariah compliant financial products among their clients in the UAE. Increasing numbers of people interested in real estate investment is one of the signs that indicate this growth trend is expected to continue. The demand for mortgage products that avoid Riba is reinforced with the GCC reporting an estimated 65% of the population under the age of thirty wants to own property.

The article states the total value of Shariah compliant assets has grown by over one hundred percent since 2006 with the global Islamic finance market estimated to be worth approximately $1.3 trillion at the end of 2011. In fact, the trillion dollar Islamic finance industry is expected to double in size between 2011 and 2015 according to Standard & Poor, the international ratings agency, which attributes this projected global growth to younger, faster growing Muslim populations.

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