Fondazione Housing Sociale, Milan 2006
Accesso alla casa per gli immigrati - Il Mutuo islamico
This first-ever Shariah-compliant real estate transaction was structured and executed in Italy in 2006 in the historical town of Pavia. The Islamic financing was provided through a contract of murabahah
The transaction is outlined in a study published in 2007. This paper starts with the definition of the prohibition of interest rate in Islam and provides an overview of Islamic finance in the world and of its institutional players. It then turns to some Shariah-compliant home financing experiences in Western countries that are facilitated by public institutions and continues with a detailed analysis of the Italian housing market and the role played by residents in Italy of foreign origins
It then focuses on the main issues faced by the implementation of Islamic legal contracts (such as murabahah, agency murabahah, ijara-wa-iqtina’, declining balance partnership) used for Islamic home financing in the Western systems
The various options available under the Italian civil code and the maximization of the financial, fiscal and managerial viability close the study
Available on request