Shari’ah compliant real estate investments (REITs) are becoming an increasingly growing sector around the world. Many investors are tapping into Shari’ah compliant investment sector in the infrastructure and real estate arenas.
Some of the major Islamic financial hubs of the world have opened their doors to opportunities within the Islamic finance investment world. Halal investments connote an opportunity to invest in something permissible and in accordance to the principles of Islam.
Shariah finance regulations are held with upmost importance in order to ensure that any type of investment is carried out in a Shariah compliant manner. There are many rules governing real estate investments that comply with the teachings of the Shariah.
These rules include the prohibition of interest that is completely forbidden according to Islamic financial ruling. The company who is investing should also be halal therefore companies that sell alcohol or pork for example would not be considered halal and would not be able to invest in a Shariah compliant manner.
Beyond the regulations of halal real estate investments Muslims are allowed to invest in permissible real estate investment companies that can put blessings in their project and increase profitability for their real estate ventures. There are many real estate companies that offer Islamic REITs around the world and the number of opportunities is increasing as more people are becoming aware of the benefits of Islamic financial investments.
Profit sharing is encouraged in Islamic real estate investments and the profit should be shared for the hard work that is carried out through investing in the real estate sector. The intention to develop a building or infrastructure project in a halal manner can be utilized with a REITs fund that can gather a group of investors who place their money in order to complete a halal real estate project effectively.
Many investors and entrepreneurs are tapping into the Shariah compliant real estate investment funds as it gives them a halal opportunity to earn in a halal manner through their specialized fields of real estate. It also enables investors to excel and progress, developing halal real estate projects which can benefit the community and economy at large of countries around the world. There is unprecedented scope for the real estate sector internationally and the growth of Islamic financial investments around the world is a testament to the fact that Shariah compliant real estate investing is on the rise.