Islamic house financing:current models and a proposal from social perspective
Shelter is one of the basic needs for human beings. Its availability for the people is an Islamic imperative. In view of the appalling living conditions for a substantial proportion of population in most countries around the world, especially Muslim, Islamic banks have entered the field with varying schemes for house financing. In this infant industry, the effort is understandably guided by profit motive but a social dimension has to surface in course of time. Unfortunately, the models banks currently use for house financing remains under the juridical gaze, more so as the practice is not always found transparent. This paper looks at Islamic house financing models in a broader societal context. It evaluates the efficacy of the in practice financing structures and suggests a new approach. The proposed model is shown as superior to the existing ones. It meets the norms of equity, fair play and openness and does not presumably violate any other Islamic norm. Finally, the paper makes some policy suggestions to integrate Islamic house financing with broader social goals of an Islamic economy.
|Date of creation:||04 Jan 2011|
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- Zubair Hassan, 1997.
"Fulfilment Of Basic Needs: Concept, Measurement, And Muslim Countries' Performance,"
IIUM Journal of Economics and Management,
IIUM Journal of Economis and Management, vol. 5(2), pages 1-38, June.
- Hasan, Zubair, 1997. "Fulfilmen of Basic Needs: Concept, Measurement and Muslim Countries’ Performance," MPRA Paper 3123, University Library of Munich, Germany.
- Richard Arnott, 2008. "Housing policy in developing countries. The importance of the informal economy," Working Papers 200801, University of California at Riverside, Department of Economics, revised Jan 2008.
- Malpezzi, Stephen & Mayo, Stephen K, 1987. "The Demand for Housing in Developing Countries: Empirical Estimates from Household Data," Economic Development and Cultural Change, University of Chicago Press, vol. 35(4), pages 687-721, July.
- Hasan, Zubair, 1988. "Distributional equity in Islam," MPRA Paper 2785, University Library of Munich, Germany. Full references (including those not matched with items on IDEAS)
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