Words of Wisdom - the Editor

Peace.
Got busy with a new project. So couldn’t add more news. Although I came across a fine article by a brother on the history and future of Islamic Banking. I was surprised to know that Islamic banking had beginnings in 1975. Wow. That’s almost as early as my birth. And I guess if there are enough like minded people any idea is bound to grow. I too used to wonder if I can invest without plunging into interest based transactions.

UK I noticed is taking some fine initiatives to promote Shariah Finance. Also came across a western brother or atleast who calls Muslims his brothers and sisters but laughs cynically at the DOW Islamic index as 'bending backwards' to accommodate those guys who have four wives and cut of peoples hands. O well some people just don't get it, do they?

Wednesday, November 5, 2008

Saudi Arabia sees launch of Islamic real estate

Saudi Arabia's Sumou Holding and Geneva-based Encore Management have launched the first Islamic Real Estate Investment Trust (REIT) for the Kingdom of Saudi-Arabia. This Saudi-Swiss joint-venture may change the real estate landscape in the GCC.

A Real Estate Investment Trust or REIT is a company which invests in real estate projects. 

A REIT can be a publicly listed or privately owned entity. 

Usually nine tenths of the rents of the REIT are distributed to its shareholders in the form of dividends, but the legal aspects of a REIT vary from country to country.

In the US the first REITs were launched in the1960s. In Europe, this innovative securitization has only recently been passed. The global REIT-volume is estimated at around $700bn.
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