Periodically, we conduct web search engine queries to test how our site appears.
Yesterday, we Googled “Shariah Finance Watch” and an advertisement appeared to the right of the results. The advertisement was entitled, “INTEREST FREE HOME FINANCING.”
That really caught our eye because Shariah-Compliant Banks around the world often promote their Shariah-Compliant mortgages as “Interest-free.” The implication is that money is loaned for free. The industry especially seems to like to use this misleading terminology to try to attract non-Muslim business. (Under Shariah, non-Muslims still have to obey and follow Shariah law.)
The fact is, Shariah-Compliant mortgages cost money. There are all sorts of “fees” and “charges” associated with them and these fees and charges (i) usually exceed interest charges on conventional mortgages and (ii) often fluctuate in accordance with prevailing interest rates.
Here is the page that was linked from the “INTEREST FREE HOME FINANCING” ad on Google…