Kuwait Finance House Unveils New Property Financing Product
Kuwait Finance House (Malaysia) Bhd (KFH), the financial institution looking to invest in the Malaysian property market, has obtained the greem light from Bank Negara Malaysia to launch the KFH Musyarakah Mutanaqisah Home & Property Financing-i, a new Islamic financing product, based on the Syariah concept of Musyarakah Mutanaqisah (diminishing partnership) and Ijarah (leasing).
According the a report,
In a statement on May 8, KFH, which is the country’s first foreign Islamic bank, said the financing was a form of diminishing partnership contract, where the customer and the bank jointly purchased and acquired the property. The property is then leased to the customer on monthly rentals, which are paid by the customer and applied towards increasing their ownership until full ownership.
KFH executive director Salman Younis said the facility would be made available initially for properties in which KFH had invested in. He said one such property was the Pavilion Kuala Lumpur project at Jalan Bukit Bintang.
The Pavilion, touted as the ‘last piece of prime property in the golden triangle’, is the first project that KFH has invested in.
For further reading:
Kuwaitis Looking to Invest in Malaysian Property
Pavilion KL to have retail sales of RM1.56b in 2008
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Comment by johnsons — June 9, 2007 @ 4:20 pm