Pearl Real Estate Development Company today announced that it has entered into an agreement with Bahrain-based Shamil Bank to provide Islamic home financing to buyers in the USD 250-million Abraj Al Lulu development, the ground-breaking freehold luxury apartments project in Bahrain.
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| Mr. Mohammed Dadabhai, Chairman of Pearl Real Estate Development Company shaking hands with Mr. Mohamed Hussain, the Chief Executive of Shamil Bank after announcing a Islamic mortgage financing agreement. |
Commenting on the significance of the agreement, Mr. Mohammed Dadabhai, Chairman of Pearl Real Estate Development Company, said: "Our agreement with Shamil Bank to offer Islamic home finance is a strategic step to provide best-of-class mortgage financing option to our customers. The home finance offer also reflects our desire to increase financing options in order to facilitate buyers to acquire property in the Kingdom of Bahrain."
Under the terms of the agreement, Bahrainis, other GCC nationals and expatriates residing in GCC, would be offered Shamil Bank's Islamic financing product, 'Shamil Tamweel Aqari' which is based on the Sharia'a principle of 'Ijara.'
Customers availing this facility under the Islamic financing mechanism, 'Ijara' will not be required to start repayments during the construction period which will work out to be the benefit of a grace period on repayment as part of the product offering. These advantages come on top of additional facilities which include sale deeds from the government with resale rights.
Elaborating on the product's significance in the Kingdom's real estate sector, Mr. Mohamed Hussain, the Chief Executive of Shamil Bank, said: "The development of real estate sector is always an important economic activity in the growth of a country. We at Shamil Bank believe in contributing to the development of this sector through financing options that make acquisition of properties within reach."
Commenting on the product, Mr. Tariq Bahar, Head of Retail Banking at Shamil Bank, said: "Shamil Tamweel Aqari is a Sharia'a-compliant alternative for those who want an Islamic option compared to conventional mortgage financing. It is an excellent investment product with flexibility, competitive rates and other benefits."
Abraj Al Lulu is scheduled to be completed by December 2007.
