Having already opened a branch in Birmingham as well as a Commercial Centre for Islamic finance (to cater to its high net-worth customers), IBB has now pledged to work with Birmingham City Council in order to help budding entrepreneurs in the city. Given that Muslims comprise 14.3 per cent of Birmingham’s population, it’s no surprise that IBB believes the city is a honey pot for individuals and businesses looking for Sharia’a-compliant (Islamic) banking. “We are committed to providing these entrepreneurs with the opportunity to grow their business without compromising their ethical principles,” explains IBB Chairman Mohsen Moustafa, “Our business banking proposition and Commercial Property Finance product can help them achieve their aims in harmony with Sharia’a law.” Most notably, Sharia’a law prohibits interest payments and certain types of investment, such as those concerning alcohol, pornography and gambling. Many of IBB’s products remain unique in the UK retail market, such as its Commercial Property Finance product. It is the only Sharia’a compliant Business Mortgage product that works using Islamic principles of shared ownership. Instead of giving the customer a loan to go and buy a property, the bank and the customer buy the property together as partners, and over time the bank transfers it’s share of the property to the customer in return for set monthly payments. In addition to the Commercial Property Finance Product, IBB offers several other banking products that can be of use to “ethical entrepreneurs” such as Savings accounts and Term Deposits, Business Finance and Investment accounts. “The real strength and opportunity for Birmingham lies in its diversity and the scope for energy and enterprise that this creates for us,” explains Moustafa, who says he wants to ensure that the bank’s presence in the city translates into business growth among communities that may feel excluded from other financial avenues. Since becoming the first high street bank in the western world to offer Islamic banking when it opened in August 2004, IBB has gone on to open five new branches and two Commercial Centres in the UK. With over 40,000 customers today, it now handles more than £125m of customer deposits. For other Islamic Finance articles, click herePicture source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.