Our Land Finance is based on the Shari’a concept of ‘Diminishing Musharaka’.
Under the scheme, Alizz Islamic Bank will enter into a Diminishing Musharaka Agreement with the customer, whereby; each party contributes into the Musharaka Capital with a certain percentage to acquire the land jointly. The bank’s and the customer's common portions in the Musharaka asset shall be divided into equal shares.
The customer shall purchase shares of bank's portion from time to time by paying the sale price in installments. Accordingly, at the maturity of the Musharaka, the Bank's portion in the land shall transfer to the customer, thereupon; the customer shall be deemed the sole owner of the land.