A comparative study of Islamic housing finance models and issues

Hasnan Baber

Qualitative Research in Financial Markets, 2017, vol. 9, issue 2, 168-180

Abstract: Purpose - This paper aims to provide comprehensive review of Islamic housing finance models. The paper provides detailed mechanism and solution to contemporary issues of these models.. Design/methodology/approach - This paper is conceptual in nature. Based on an extensive study of literature, this paper explains working of two Islamic modelsal-Bay’Bithaman Ajil (BBA) and the Musharakah Mutanaqisah (MM) with hypothetical examples. Findings - It was revealed in the study that BBA is just convergence of conventional housing finance and does not fall in line withshariahregulations. MM approach is a relative new concept and strictly followingshariahguidelines. MM approach is based on welfare for all rather than profit for few. There were some issues spotted with MM model when implemented on the ground, and hence this study came up with solution to such issues. Research limitations/implications - This paper cannot be tested until the models are practically applied. This MM contract is new and will take some time to be accepted by customers, but its reliability promises it.. Originality/value - This study is original and new, as it finds BBA not permissible which no other study has concluded so far. Also issues in these models, and their solutions were studied first time.

Keywords: Musharakah; Islamic finance; Musharakah Mutanaqisah; al-Bay’ Bithaman Ajil; Housing finance models; Islamic housing finance (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:qrfmpp:qrfm-12-2016-0053

DOI: 10.1108/QRFM-12-2016-0053

Access Statistics for this article

Qualitative Research in Financial Markets is currently edited by Prof Bruce Burton

More articles in Qualitative Research in Financial Markets from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().