Real estate finance in Kuwait – evaluation of the approaches of Islamic and conventional banks
type: CreativeWork
description: Just as shelter is one of the basic needs for human beings, it can also be said that having the necessary finances in place to be able to live in and own a house represents an equally critical need. Since most people are not in a financial position to pay for their house in one transaction, the availability of a mortgage or some form of finance has over time become an essential element in promoting and safeguarding homeownership. Islamic finance began to emerge and received growing recognition as a new reality in the world of international finance, particularly when the global financial crisis occurred in 2008 providing a severe shock to the financial system and markets the world over. While conventional and traditional banks were seriously affected, Islamic banks, perhaps surprisingly to some within the sector, remained relatively unscathed and less prone to the crises that followed in the aftermath. The performance of Islamic banks through a number of key ratios has produced satisfactory results. In terms of the market in Kuwait, Islamic banks have a history of conducting business activities within a somewhat niche market which seeks to attract and offer products and services based on a profit and loss sharing concept governed by the Islamic principles of Shariah. The growth of Islamic banking during recent years in Kuwait and their superior performance compared to the conventional system has helped to increase the relative competitiveness of both banking systems. This thesis seeks to provide a comparative study of conventional banks and Islamic banks in Kuwait in terms of the challenges they face and the benefits they provide for housing financing. It also identifies the similarities and differences between Islamic and conventional banks. The Islamic mortgage, which is the housing finance tool of Islamic banking and finance, offers those who desire it a home ownership alternative that is in harmony with Islamic Shariah principles and therefore free of interest, w…
abstract: Just as shelter is one of the basic needs for human beings, it can also be said that having the necessary finances in place to be able to live in and own a house represents an equally critical need. Since most people are not in a financial position to pay for their house in one transaction, the availability of a mortgage or some form of finance has over time become an essential element in promoting and safeguarding homeownership. Islamic finance began to emerge and received growing recognition as a new reality in the world of international finance, particularly when the global financial crisis occurred in 2008 providing a severe shock to the financial system and markets the world over. While conventional and traditional banks were seriously affected, Islamic banks, perhaps surprisingly to some within the sector, remained relatively unscathed and less prone to the crises that followed in the aftermath. The performance of Islamic banks through a number of key ratios has produced satisfactory results. In terms of the market in Kuwait, Islamic banks have a history of conducting business activities within a somewhat niche market which seeks to attract and offer products and services based on a profit and loss sharing concept governed by the Islamic principles of Shariah. The growth of Islamic banking during recent years in Kuwait and their superior performance compared to the conventional system has helped to increase the relative competitiveness of both banking systems. This thesis seeks to provide a comparative study of conventional banks and Islamic banks in Kuwait in terms of the challenges they face and the benefits they provide for housing financing. It also identifies the similarities and differences between Islamic and conventional banks. The Islamic mortgage, which is the housing finance tool of Islamic banking and finance, offers those who desire it a home ownership alternative that is in harmony with Islamic Shariah principles and therefore free of interest, w…
author: Al-Barak, Mohammad Jasem
language: en
date published: 2021-09
date modified: 2026-07-24T02:31:07Z
provider: Heriot-Watt University
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Heriot-Watt University

PropertyValue
property ID: Handle
value: http://hdl.handle.net/10399/4651