Islamic Bank of Britain (IBB), a UK-based sharia compliant retail bank, said it has completed its first finance deal in Scotland for Al-Meezan, a non-profit, non-political organisation based in Glasgow.  

The deal for commercial property finance, valued at £400,000 ($652,276), has enabled Al-Meezan to complete renovation and extension work at its premises.  

It also includes refinancing of the credit for the initial building works, which will include 10 purpose built classrooms, a refurbished lecture theatre, a large foyer area, a multi-purpose room, a prayer hall, toilet facilities on both the ground and first floor, a lift and new kitchen facilities, said an IBB statement.

Al-Meezan provides Islamic education to over 600 women, children and teenagers in Glasgow and its surrounding areas. The renovated premises will allow it to offer more classes in improved facilities.  

Sultan Choudhury, managing director, IBB, said: “As a result of working with Al-Meezan, IBB has pioneered the development of Islamic commercial property finance in Scotland.  

"With organisations struggling to access business finance we expect continued interest in our offering, particularly in Scotland where there is a growing interest in Islamic and ethical finance.”

Salma Shaikh, chairperson of Al-Meezan, noted that the completion of the Al Meezan building works represented a tremendous achievement for the centre and the local community in Glasgow.  

"It is also significant for the centre that we were able to complete the works with finance from IBB," she added.

The product used the Islamic finance principles of shared beneficial ownership (Musharaka) with a lease element (Ijara), where IBB and the customer buy the property as partners.

The property is owned by both parties beneficially and the customer makes an Occupancy Payment to IBB in return for having the sole use of the property.  

At the end of the term, when all acquisition payments have been made and the finance has been settled, IBB's beneficial share of the property transfers fully to the customer. - TradeArabia News Service