"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 of a substantial proportion of the population in most countries around the world, especially Muslim, Islamic banks have entered the field with various schemes for home financing. In this infant industry, this effort is understandably guided by the profit motive, but a social dimension has to surface in the course of time.Unfortunately, the models banks currently use for home financing remain under the juridical gaze, more so as the practice is not always found to be transparent. This paper looks at Islamic home financing models in a broader societal context. It evaluates the efficacy of the current financing structures practised 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 does not, presumably,violate any other Islamic norm. Finally, the paper makes some policy suggestions to integrate Islamic home financing into the broader social goals of an Islamic economy.
|Date of creation:||08 Dec 2010|
|Date of revision:||02 Apr 2011|
|Publication status:||Published in ISRA: International Journal of Islamic Finance, Kuala Lumpur Number 1.3(2011): pp. 1-24|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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, 1997.
"Fulfilmen of Basic Needs: Concept, Measurement and Muslim Countries’ Performance,"
3123, University Library of Munich, Germany.
- 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.
- 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.
- Hasan, Zubair, 1988. "Distributional equity in Islam," MPRA Paper 2785, University Library of Munich, Germany.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:31638. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.