n March 2024, Islamic Bank Australia made a significant decision that reverberated through the financial industry by choosing to relinquish its restricted banking licence to APRA. This move underscored the intricate challenges of raising sufficient capital within the current economic climate. Islamic Bank Australia: A Vision Interrupted In a surprising turn of events that has stirred the financial sector, Islamic Bank Australia has taken the decisive step of returning its restricted banking licence to the Australian Prudential Regulation Authority (APRA). This move, executed with solemnity l ..read more

In the heart of Australia, a financial revolution is quietly unfolding, offering a beacon of hope and inclusivity for those seeking to align their financial decisions with their ethical and religious values. Islamic finance in Australia is not just a niche market; it's a growing sector that presents a viable, interest-free alternative to conventional banking, particularly in the realm of home loans. This system, deeply rooted in Islamic law (Sharia), steers clear of interest (Riba) and bases its operations on principles of profit-sharing, leasing, and joint ownership. It's an approach that app ..read more

Introduction Islamic finance, a unique financial system that operates in compliance with the principles of Sharia, or Islamic law, has significantly marked its presence in the global finance arena. This article aims to explore how Sharia principles intricately guide Islamic financial practices, differentiating them from their conventional counterparts and highlighting their relevance in today's economic landscape. Sharia Principles in c At the heart of Islamic finance lies the adherence to Sharia, which governs not only religious aspects but also economic activities. Key principles include the ..read more

In the bustling city of Melbourne, known for its diverse cultural tapestry, Islamic schools have transcended their traditional roles. No longer just centers for academic learning, these institutions have morphed into vibrant hubs for community engagement, offering a plethora of services that benefit not just students but also their families and the broader community. The Evolution of Islamic Schools in Melbourne Melbourne's Islamic schools, rooted in rich histories, have evolved significantly. Initially established to provide a balanced education grounded in Islamic values, these schools have ..read more

Ijarah Finance in Australia: A Comprehensive Exploration of Sharia-Compliant Leasing Introduction to Ijarah Finance Ijarah, a term deeply rooted in Islamic jurisprudence, translates to 'leasing' in the conventional financial world. In Australia, a multicultural and economically diverse nation, Ijarah Finance is emerging as an ethical and viable alternative to traditional leasing methods. This comprehensive guide aims to demystify Ijarah, elucidate its principles, and explore its burgeoning presence in the Australian financial landscape. Understanding Ijarah in Islamic Jurisprudence Ijarah is u ..read more

Navigating Wealth Enhancement Through Property Equity: Insights from Afiyah Islamic Finance Introduction In the Australian financial landscape, the strategic use of property equity stands as a pivotal approach to wealth augmentation. At Afiyah Islamic Finance, we are attuned to the nuances and potential of this strategy within the framework of Islamic finance. This blog delves into the use of property equity for investment, enriched with the principles of Islamic finance, particularly Ijarah. Understanding Property Equity Investment Property equity, the value difference between your property's ..read more

In the journey to homeownership, financial acumen plays a vital role in determining how smoothly you can navigate the labyrinth of loan repayments. Among the financial tools that can potentially speed up this journey, and save you money, is offset accounts in Islamic Home loans. But what exactly is an offset account? How does it operate? Is it a worthy addition to your home loan setup This article aims to answer these questions and also explores the particularities of offset accounts in the context of Islamic finance options like Ijarah. The Essence of an Offset Account An offset account is ..read more

National Australia Bank (NAB), guided by  Dr. Imran Lum, has been honoured with the Islamic Bank of the Year award at The Asset Triple A Islamic Finance Awards 2023. Though not primarily an Islamic bank, this recognition serves as an unequivocal endorsement of the strides NAB Islamic Finance has made in the sector, both within Australia and on the global stage. Dr. Imran Lum: The Catalyst Behind NAB Islamic Finance Dr. Imran Lum is not merely the Head of Islamic Finance at NAB; he is the force behind the bank's pioneering and multi-award-winning Islamic business banking offerings in Austr ..read more

Investing in property through an Islamic home loan is a valuable means to secure an asset that could bring substantial returns. This guide aims to walk you through the process of investing in a property through Ijarah finance, a Sharia-compliant financing option. The Foundation: Financial Planning Prior to diving into a property investment, establish a firm financial footing. Assess your financial standing to determine your maximum expenditure, avoiding undue strain on your budget. Step 1: Assemble Your Deposit and Calculate Borrowing Potential The initial deposit for your investment property ..read more

Islamic Home Loans with Ijarah: Understanding Rules Governing Lease Rentals In the realm of Islamic finance, one financial instrument has gained prominence in facilitating homeownership: the Ijarah lease contract. As interest-based transactions are prohibited in Islam, Islamic financial institutions have developed Shari'ah-compliant tools for lending and leasing, such as the Islamic Home Loans with Ijarah contract. This blog post delves into the Ijarah lease system, focusing on the rules governing lease rentals. Ijarah Lease: An Overview Ijarah, derived from the Arabic term meaning "to lease ..read more