Interest-Free Loans for Dutch Muslims

Dutch Muslims will have Shari`ah-compliant bank loans through a government sanctioned Islamic finance company for the first time in the northwestern European country.

Interest-Free Loans for Dutch Muslims

"We will for a start provide Dutch Muslims with interest-free loans to buy cars and furnish their homes," Mohammed Dini, the head of Bilaa-Riba (interest-free) company, told Tuesday, September 5.

Registered at the Dutch Chamber of Commerce in October of last year, the company has received so far up to 3,000 requests.

"We will start granting interest-free loans as of October," Dini announced.

Muslims make up one million of the Netherlands's 16 million population, mostly hailing from Turkish and Moroccan origin.

There are more than 300 mosques, 1000 Islamic cultural centers, two Islamic universities and 42 preparatory schools in the country.

House Loans

Dini, of Moroccan origin, said the company is considering now house loans.

"We are still considering how to sell the Islamic economic concept of Murabahah (cost-plus financing) to authorities," he said.

Dini said the Dutch government finances 35 percent of house loans to encourage citizens to own real estate and put a cub on rentals.

"So we, as Dutch citizens, want the government to treat us on equal terms and finance a part of the Murabahah," added Dini.

"Our proposal is already backed by some political parties because it is our right as we are part and parcel of Dutch society."

Dini said the overwhelming majority of Muslims in the Netherlands do not own real estate because they -- under Shari`ah -- cannot take interest loans from banks.

Dutch Muslim leaders have failed to convince bank executives to offer Shari`ah compliant services for Muslims so that they can buy homes on interest-free loans, IOL's correspondent says.

The Dutch parties, in principle, do not oppose finding a legal solution to Shari`ah-compliant banking services.

Some politicians are now seeking to amend laws governing financial dealings in the country so that Muslim citizens can benefit.

"Foreigners are less fortunate in owning real estate for religious considerations," member of The Hague Municipality Barte de Liefde told IOL.

"We must come up with ways to enable all citizens, including Muslims, enjoy state services for the welfare of this society," he added.

The Islamic banking industry, which began almost three decades ago, has made substantial growth and attracted the attention of investors and bankers across the world.

There are an estimated 300 Islamic banks and financial institutions worldwide holding $300 billion in assets predicted to grow to $1 trillion by 2013.

Europe's giants like Britain and Germany expanded over the past three years in producing banking services and products aimed at the Muslim clients.

Japan is planning to introduce Shari`ah-compliant dealings into its beefy banking system in a bid to attract lucrative Middle Eastern oil money.

Güncelleme Tarihi: 20 Eylül 2018, 18:16