Bank Nizwa, the first dedicated Islamic bank in Oman that offers fully shari'a-compliant products and services, has launched its new home construction financing scheme - Diminishing Musharaka.

Unveiling the new product, Bank Nizwa said the move comes in line with the bank's plans to offer customers a multitude of innovative Islamic finance solutions.

Based on this contract, an asset is jointly owned by the bank and the customer. The banks can lease his share to the customer and the customer can makes periodical payments to buy out the bank’s partial ownership, so that by the time the Diminishing Musharaka contract matures, the customer is the sole owner of the property, said the statement from the bank.

Arif Al Zaabi, the assistant general manager (retail banking) at Bank Nizwa, said: "While Islamic finance is considered a novice sector in Oman, we are seeing a significant shift in the market from Ijara to Diminishing Musharaka."

"This trend has been gaining ground because customers can get the Title Deed (Mulkiya) registered under their names from day with more flexibility in future," he noted.

Designed for customers looking to avail of ethical financing, the bank’s latest property financing product provides customers complete ownership of their home in full-compliance with the principles of Islamic finance, explained Al Zaabi.

Bank Nizwa offers a competitive profit rate allowing customers for all segments the opportunity to buy the home of their dreams with a repayment period of up to 25 years, he added.-TradeArabia News Service