Property Abroad News | Overseas Property News | News Articles

Countries:
Facebook Linkedin Twitter RSS
Your have 0 properties in your shortlist - View Shortlist >>

Refine Your Search

Gcc Countries Set To See Growth Of Islamic Mortgages

News Posted On: 02 November 2011

GCC countries are set to see significant growth in the Islamic mortgage sector, as, with 65% of the population under the age of 30 demand for affordable housing is predicted to soar.

Qatar and Saudi Arabia are expected to experience higher growth than other markets due to increased economic activity, and demand is also expected to expand in Oman, as three Islamic banks have recently been licensed to operate in the sultanate.

Islamic mortgage financing has developed quite quickly in the region during the last few years , especially when compared with conventional mortgage providers with companies such as Deutsche Housing Finance, Sakana Holistic

Housing Solutions and Saudi Home Loans Company coming to the fore. Islamic mortgages are also becoming easier to understand and far more acceptable.

Banking experts feel the demand falls into three separate categories: some customers will go for Islamic financing due to their religious convictions, while others may have religious beliefs but don't feel Islamic financing is particularly different from conventional financing, and the third group may have few religious beliefs but find Islamic financing an attractive proposition in comparison to other more conventional banking products.

In fact many Islamic mortgage providers are attracting customers from all religions due to the value offered by their products, and many GCC countries have large populations of non-Muslims. Another factor involved in the growth of Islamic mortgages is the advent of freehold property, which was a new concept until the early when emerging markets like Dubai, Bahrain, Oman and Qatar brought it forth.

Before this time ownership was restricted to nationals with mortgage financing being provided primarily through state run housing banks.

View overseas property for sale

Written by

Back to news articles for this country


Overseas Property News

Middle Eastern Investors to invest 145 Billion USD in European Assets
2014-07-04

CBRE, a reputed property consulting and research firm, recently confirmed that investors from the Mi.....

Emirates Banks Association Considers Capping Mortgages
2013-01-28

The Emirates Banks Association is meeting with the United Arab Emirates’ central bank to discuss mea.....

Is Dubai Property Really in Recovery
2012-10-03

But we are not here to talk about that, we are here to answer whether or not Dubai is really in rec.....