Mr Kingsley David, Executive Director of MCCA, had the honour of authoring the first series of articles on Islamic finance for FINSIA, Australasia’s peak body representing a community of over 14,000 finance professionals, published on its flagship InFinance platform.
With over 35 years of experience in financial services, Mr David brings extensive experience and leadership to MCCA and the field of Shariah-compliant finance and investments.
In this article, Mr David shared his expertise on the challenges in commercialising Shariah-certified products, delving deep into the question: can these products be funded in Australia?
Shariah-Compliance in Australia
Creating Shariah-compliant residential finance products in Australia is complicated due to a highly competitive market. Even a slight difference in pricing can significantly affect demand, as consumers opt for cheaper conventional options.
Balancing competitive funding and product differentiation is also a challenge for local Islamic finance practitioners like MCCA, further complicated by ongoing monetary policy changes.
Despite these challenges, the Australian residential property finance market is growing more competitive, offering consumers better pricing and a wider range of options. Shariah-compliant options, such as MCCA’s Income Fund, have also emerged to cater to the needs of our growing Australian Muslim community.
So what is the ideal solution? What has been our progress in making Shariah-compliant products more scalable? Read the full article by Mr David on FINSIA.
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