Big banks make Islamic leasing moves

Dubai Islamic Bank (DIB), which offers a variety of Islamic leasing products including those for residential properties and auto financing, plays a big role in financing Islamic leasing in the Middle Eastern region. DIB is currently proceeding to acquire the Noor Bank where members are appointed to oversee an interim board. Some research on the institution
reveals that they have a Noor Bank Auto Finance Department that uses Islamic leasing to steer clear of Riba.

Shariah compliant leasing products are gaining mass appeal to practicing
Muslims and others alike from the UK to the Middle East, causing an upward trend in Islamic financing across the world.

The central bank of the Philippines, Bangko Sentral Ng Pilipinas, has approved new Shariah regulations. It is moving ahead with the passing of the regulations that will further define how the Islamic leasing sector will play a role.
These policy initiatives were a direct result of the Islamic banking law that
was signed and came into effect in September last year.
The one and only Islamic bank that deals in Islamic leasing in the Philippines is Al-Amanah Islamic Investment Bank of the Philippines.
Other Islamic leasing institutions that already have a presence in the
Philippines are expanding into the Islamic leasing/fintech space.

Akulaku is an online company that deals in a variety of different financial
products including Islamic leasing. Recently, the Indonesian company
reported it will launch a new Shariah compliant platform in the first half of
2020.

Akulaku has already raised US$100million in funding where one of the investors is Ant Financial, the financial services arm of Alibaba. The online
platform offers a variety of different merchant and store possibilities. Moving toward a new Shariah compliant platform will include an Islamic leasing element.

Saudi Umm Alqura Company for Development and Construction is
working together with an investment company by launching a US$4.53 billion real estate development fund that will focus on Mecca.

The planned properties include two commercial developments while seven
hotels are another developing area where Islamic leasing is believed will
play a central role.

Shoeb M Sharieff is the president and CEO of Ijara Community Development Corp. He can be contacted at shoeb@ijaracdc.com.