Govt to Launch Halal Subsidized Funding For AADL Housing
Public banks ended the problem of owning a property contract and the real estate book, which was behind the “brake” of the Islamic financing project for “AADL” housing, which was revealed a year ago and has not been realized until today, through proposals and legal formulas presented by the Supreme Islamic Council, allowing the beneficiaries of “AADL” housing to resort to Subsidized Islamic Financing, similar to what is adopted by banks and wickets.
A member of the National Sharia Council for Issuing Fatwas for the Financial Industry at the level of the Supreme Islamic Council, Dr Mohamed Boudjallal, told Echorouk that great efforts are being made to enable citizens to acquire their houses in formulas that are compatible with the provisions of Islamic Sharia while benefiting from the support provided by the state’s public treasury in traditional loans.
“There are efforts to direct public banks to finance housing that do not yet have a title document, that is, the property contract or the real estate book, by adopting the Sharia proposal submitted by the Supreme Islamic Council”, he added.
This study aims to discuss Sharia-compliant formulas that qualify housing beneficiaries from obtaining financing for these projects even if they do not have a final ownership contract for these housing units, a point that raises ambiguity about the file, he explained; “We worked hard to find suitable and Sharia-compliant formulas, and we will reveal the results of these meetings as soon as possible”.
Dr Mohamed Boudjallal confirmed that this project aims to facilitate the process of paying the premiums for the beneficiaries of the “AADL” housing project, and the National Corporation for Real Estate Promotion, which are looking for Islamic formulas that conform to Sharia.
“In the coming days, Sharia-compliant formulas for financing youth projects “ANAD” will also be launched, as the file is studied with the delegated ministry in charge of Star-Ups and the concerned agency, and suitable formulas for this project will be revealed soon”, he added.
This project comes in conjunction with the widespread demand for these Sharia-compliant formulas by the Algerian youth, which receives wide attention; “youth projects will benefit from Sharia-compliant funds during the current year, and work is in full swing with the Finance Ministry.”
Previously, the National Real Estate Promotion Corporation signed an agreement 18 months ago with the Algerian People’s Credit “CPA” that allows underwriters of the public housing promotion program to benefit from the financing of this public bank in the form of Islamic banking.
The agreement aims to open new horizons in the banking services directed at financing housing. This project came in response to the urgency of many of the institution’s customers to acquire housing through financing formulas compatible with Islamic Sharia law.
Regarding the underwriters’ right to convert their loans, which were formulated according to the traditional system, to the Islamic formula, the body affiliated with the Supreme Islamic Council in charge of the fatwa had previously issued its opinion on the permissibility, although customers previously confirmed that these requests received varying responses from banks due to the difficulty of their implementation.
