This article was first published in Islamic Finance news Volume 16 Issue 33 dated the 21st August 2019.
Aliredha Walji, Vice President, USA, writes about the Status of Islamic Financing and all the options available in the US in an article that was featured in Islamic Finance News.
With the US Muslim population expected to hit eight million by 2050, the demand for Shariah compliant financing for mortgages as well as business loans is expected to rise. While the dream of owning one’s own home may have — only a few decades ago — seemed far-fetched for many Muslims seeking to maintain a Halal lifestyle, scholars, visionaries and financiers have since then come together to help create viable alternatives to the conventional Riba (interest)-based financing.
Previously, Muslims had to choose between either renting or — unless they had enough money to purchase a home outright — using conventional financing. While conventional methods do provide ease of access, they are rooted in interest and debt, thereby failing the test of Shariah compliance. Nowadays, US Muslims have options when it comes to Islamic financing, and a few different methods have been developed to address the issue, including the Musharakah, Ijarah and Murabahah models.