Islamic Banking in Kenya!

[Faarax-Brawn]

Originally posted by Socod_badne:

How exactly does an Islamic bank make a profit if it doesn't charge interest?

I have grapled with that question over a period of time. I really dont know and there are conflicting theories on this and i really dont want to go into this as of now,since it has been discussed numerous times & am no expert to answer.

 

But what i do know however is that,you dont have to charge interest to make a profit. The key is to understanding how islamic banks works. Look at it as a large ayuuto. The "deposits" or contributions by customers will be used as an investment capital which in turn is used to run a profitable business that generates profits.

 

Anyway,this particular bank in Kenya is unique to muslims who just keep their money in xawalas or in their houses without generating any income. The idea is to collect large sums in a big pool and lend it to muslim companies in kenya so they can compete with their riba counterparts,who enjoy subsidised loans.

[Baluug]

Originally posted by Socod_badne:

How exactly does an Islamic bank make a profit if it doesn't charge interest?

I know one way that Islamic mortgage companies work is that they buy the house for the person who wants it, then sell it to them for more than they paid. So while they are making a profit off of the sold house, they are not actually lending any money, therefore no riba is incurred. There is an arabic word for this kind of transaction, but I forgot it. As well, they can make money off bank fees.

 

So when is the first Canadian branch gonna open?

[-Lily-]

They must be really pleased that its finally happening. FB, I knew about this for a while, as Nathif is a family friend. I hope it benifits the people its intended for.

[umu zakaria]

Maansha Allah. I know Nadhif, he always had that dream, am so glad it is off the ground now. Allaha u barakeeyo. A true mumin n a very very religious and educated man he was, with kind of leadership n all the oney of those arab banks, hollaah it is surely going to be a voice to reckon with!

 

Thx faraxbrown.

[Faarax-Brawn]

Umm Zak & Lily,i know Nadhif is a professional and that is why he was given the job. I'A he will suceed.

 

In the meantime,pass the message to everyone who wants to do business in Kenya that help is now available.

[N.O.R.F]

I have a friend over there right now in the middle of hudheel dhiss. Better contact the sujui

[Faarax-Brawn]

Originally posted by Northerner:

I have a friend over there right now in the middle of hudheel dhiss. Better contact the sujui

LOL. I am telling you,this is a real great opportunity for ALL Somalis. Do you know by anychance where he is blding?

[N.O.R.F]

In Nairobi I think. I was supposed to consult for him but keeps breaking his promise of emailing me the details.

[Rahima]

Excellent development for all Muslims especially those of us living in the west who don't have any choices.

 

There is an arabic word for this kind of transaction, but I forgot it. As well, they can make money off bank fees.

Murabaha.

[Blessed]

^Salaams girl. Ma runbaa in lagu aroosey?

 

 

 

Masha Allah, good news.

 

Islamic finance institutions are growing at 15% per year, it's profitable and there's a growing demand for it. Which is why many western Banks are starting to offer the not so kosher 'Sharia Compliant’ services. The whole institute has to be riba free to be Islamic.

[-Serenity-]

^Maad iska tiraahdid 'miyaad guursatay?'. Lagu aroosey sounds... a little...off.

 

Anyways, I blv thats the reason she is gone all quiet. She has been busy cooking, cleaning and being at hubby's beck and call in her spare time .

[Blessed]

^A little off? That's the desired effect.

[-Serenity-]

Oh! Sorry to have ruined it!

 

Rahima, noo sheeg sida laguu aroosey then

[Castro]

Originally posted by Zenobia:

Islamic finance institutions are growing at 15% per year, it's profitable and there's a growing demand for it. Which is why many western Banks are starting to offer the not so kosher 'Sharia Compliant’ services. The whole institute has to be riba free to be Islamic.

Z, I know this has been beat to death but I don't buy any of this 'halaal' banking nonsense. Interest by any other name is still interest.

 

Anyhow, it's good to see Rahima. Too bad she's not available anymore.

[Jacpher]

^A little congrats won't hurt dee atheer.

 

It's not easy to get a pure halaal and riba free banking system but it's a great development and good start for the continent and its Muslims.

 

Mabruuk yaa Rahima. Baaraka Allah laki wabaarka caleyki.........