As per the regulations of Shariah Law, the company has crafted rules to ensure that non-compliant activities (i.e. production or sale of alcohol or pork, gambling) must not take place in any of its buildings; be it residential or commercial.

Adhering to the Shariah Law, Earthlink has designed a buy-back policy for its projects as well. The policy says that the first party promise to provide an opportunity to avail Buy-Back Policy where the second party can receive a refund of the mutually agreed amount from the first party and there will be no deduction of hidden administration or process charges from the second party.

The policy agreements about the lease, installment sale plans, and arbitration sternly observe the principles of Shariah Law. The sale plan says that in case of having any conflict, both parties shall bear the cost of arbitration.

Hereby, all of the above-mentioned policies by Earthlink come in line with rules governing Shariah Compliance, a sincere effort by the company, that has gained the trust of the investors that business ventures with Earthlink substantially conform to Shariah Rules.

Overview of Shariah Compliance on International Level

Owing to the increased demand for Shariah Compliance, many parts of the world like the UAE, Indonesia, Malaysia, Singapore, and Bahrain have adopted different policies to regularize financing according to Islamic laws.

UAE Central Bank regularizes financial institutions including real estate finance companies. UAE owns the world’s largest Islamic banking after Saudi Arabia and Malaysia.

Emaar Properties, the developer of Burj Khalifa and Dubai Mall has a global presence in 36 countries. It uses the policy of Diminishing Musharakh (co-ownership-akin to partnership) a policy considered fair from Shariah perspective in which both the financer and customer share the risk of the property construction as well as a decline in market value.

Bahrain Financial Hub, a commercial development project in Manama, carries out a combination of Istisna and Ijarah techniques. Ijarah or lease structure states that the financier will purchase the property and will subsequently lease It to the customer for a fixed term in return for a rent. The rental payments include the profit component paid to the financier and may also be set to a reference by the bank. On the other hand, Istisna structure says that the customer commissions the financer to develop the property for a fixed price on deferred payment terms. The financier will then hire a contractor and commission him to develop the property at a lower price, and the difference in the price will be the profit of the financier. When the property is completed, the financier transfers the title to the customer.

Ethis by Indonesia is the world’s first Shariah Compliant Property crowdfunding platform and follows the policy of Murabaha (cost-plus financing).

Significance of Shariah Compliant Real Estate Sector

Real estate, an income-generating sector, is a preferred choice for many, especially the Pakistani diaspora who have sent $21.84bn remittances in 2019-2020 according to a report by the State Bank of Pakistan. The expatriates find this industry profit-driven as estimates say that 50 percent of the remittances are invested in the real estate sector due to the fact that this industry has seen only highs and no lows since the past few decades due to a growing trend of the development of housing societies in the country, says the realtors. Shariah policing in this sector will help gain the trust of both national and international investors. Consequently, the country would be able to attain maximum advantages from this sector.


Written by Kulsoom Bashir
Creative Content Writer/Blogger
Pages: 1 2

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