In Thailand, Islamic mortgage aims to offer a halal financing solution to Thai Muslims and non-Muslims who wish in the context of Islamic sharia to acquire real estate in Thailand.
In Thailand population statistics reveal 5% of the population in Thailand are Muslims and there is a large gap for financial product providers to fill in order to serve Thai Muslim customers who are committed to Shariah principles.
The Thai regulatory body of Thailand Central Bank needs a Shariah committee with the objective to adapt the finance laws in favour of Islamic Finance and licensing, and to be supportive on the enhancement in fiscal issues.
Islamic Bank of Thailand initial objectives was to address potential retail customers among the approximately 7 million Muslims in Thailand with Shariah banking products. However, because of the informal nature of Islamic finance in Thailand the bank failed to meet its objectives.
In Thailand Islamic Finance will present huge opportunities as there have been several developments in financial products which are in line with the Islamic practice and which will be creating halal financial products which are appropriate for Muslim investors as well.
THAILAND'S ISLAMIC MORTGAGE LENDERS