Keith Leach, senior manager for alburaq, a Shariah compliant lender, stated that the Islamic commercial market was currently untapped and would be the next stage in the development of the quickly growing market. alburaq said it planned to enter the market in the near future.
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However, he noted that it was difficult to predict how big the Islamic commercial market could potentially be.
Leach noted there were 100,000 small to medium Muslim businesses and the market was big enough to enter.
He added: “We receive requests daily for Islamic commercial mortgages. The Islamic community is very entrepreneurial and property is seen as a key part of their investment portfolio. It is acceptable in the restrictions of Islamic law, as it is a tangible asset that fluctuates in profit. The government is keen to see growth in the Islamic mortgage area and has encouraged banks to set up Islamic mortgages.”
David Hollingworth, head of communications for London & Country, said: “It’s a fairly young area and the number of providers is not huge. One can only imagine that it’s ripe for growth and all areas that are untapped will be targeted.”
