Societe Arabe Internationale de Banque in Egypt (SAIB) offered real estate Shariaa-compliant finance in value to EGP 45 million for 130 customers in 2011.
Alaa Bondok, manager of Islamic finance sector at SAIB, said that the Bank aims at achieving high growth rates, exceeding 15%, this year, through increasing Istisnaa (tooling) processes.
Bondok added that the Bank offered 117 real estate Shariaa-compliant finances in an agreement to finance 160 units for the workers of Cement co. (Qena) in 2010, in which the finances exceeded EGP 30 million.
Bondok called on the Egyptian Financial Supervisory Authority and the Central Bank of Egypt to restructure financial system to permit Islamic real estate financing forms such as Mudarabah (Profit Sharing) and Musawamah (negotiation of a selling price without reference by the seller to either costs or asking price).
Bondok assured that real estate Shariaa-compliant finance is witnessing high demand in the Egyptian market, especially that the Bank offered this finance with the best and easiest procedures as the repayment period is up to 10 years with special return rates.