Jeddah, 17.09.2012 – A workshop on affordable housing finance through Islamic financing and other modes, organized by the Islamic Research and Training Institute (IRTI) of the Islamic Development Bank (IDB), concluded that lack of infrastructure, clear ownership deeds, registration and title transfer processes as well as inadequacy of long term housing finance contributed towards constraints to affordable housing in a number of IDB member countries.
Releasing a research publication on the occasion, on “Challenges to Affordable Housing Finance in IDB Member Countries” co-authored by Dr. Nasim Shirazi (IRTI), Dr. Salman Syed Ali (IRTI), Muhammad Zulkhibri (IDB) and SHAPE Financial Corp., Dr. Azmi Omar, Director General, IRTI, stated that IDB member countries could take practical advantage of the policy issues discussed in the book in dealing with the problems of affordable housing through Islamic financing modes.
According to Dr. Nasim Shirazi, the population of IDB member countries is close to 1.6 billion (2011) which is expected to grow to 1.9 billion by 2020 and 2.7 billion by 2050. “As per UN Habitat estimates, IDB member countries need 8.2 million housing units per year or 22,421 units per day”, he said.
During the second session chaired by Dr. Ahmed Iskanderani (IRTI), Mr. Abdul Kadir Thomas (SHAPE Financial Corp), Mr. Ashraf Khan (State Bank of Pakistan), Mr. Zaigham Mahmoud Rizvi (World Bank consultant), Dr Salman Syed Ali (IRTI), Mr. Sohail Mitha (IDB) and Mr. Saied Ahmed (ICD) made presentations along with case studies on various aspects of affordable housing financing and how Islamic financing principles could provide suitable solutions to the issue. The presenters maintained that in order
to see further development in the housing sector, three sets of actions were to be adopted by the member countries as well as by the IDB: (1) settling a suitable business model, (2) choosing appropriate Islamic financial products, and (3) initiating reforms in legal and infrastructure institutions to facilitate these models and financial products.
It may be recalled that the IDB has, since inception, financed 38 housing or housing related projects worth around US$ 740.79 million. The book, launched at the event is available at: www.irti.org.