UNIVERSITY OF PENNSYLVANIA - AFRICAN STUDIES CENTER
As-Salaamu Alaykum w.r. w.b., This is in response to a request on msanet for information on Islamic Financing companies in the U.S. Could someone with access to soc.religion.islam please also post it there and on any other relevant forum.
Jazakum Allahu Khayran. Was-Salaam.
Salman Shaikh Salman.Shaikh@att.com -------------------------------Please cut here--------------------------
In the name of Allah, Most Gracious, Most Merciful
ISLAMIC INVESTMENT / FINANCING (NO RIBA-INTEREST) COMPANIES IN U.S.
There are at least three companies in the USA, dealing with Islamic Investments, Free of Riba (Interest). Two of them also do Islamic Financing. I believe all three of them are excellent, Alhamdolillah.
1) M.S.I. Finance Corporation (Muslim Savings and Investments) 1801 Avenue of the Stars, Suite 640, Los Angeles, CA 90067. TELEPHONE: 800-USA-MSI1 / 213-201-0290 Contact: Br. Gul Joya.
I believe MSI is a project of ICNA (Islamic Circle of North America).
INVESTMENT: They have a leasing fund and a housing fund. We have typically been getting 8% profit from our investments in the leasing fund and 4-6% from the housing fund which also has the added potential of capital gains. I believe you need to give MSI a few months notice to withdraw your investment.
FINANCING: You may Lease a CAR through them. You may also Buy a HOUSE with their SHARE (Shared Home Appreciation in Rent and Equity) program: You buy the house jointly with MSI. You make a monthly payment of rent for MSI's current share of the house plus extra money to buyout MSI's share. Thus your rent decreases every month as your ownership in the house increases. The house is appraised every year and the rent and the buyout share of the monthly payment adjusted accordingly until the house is fully paid for. (You pay rent for the fraction of the house you do not currently own, and also share with MSI any appreciation or depreciation). Since Market forces decide the rent and value each year, no Riba (Interest) is involved. I am not sure about the tax deduction status of the rents. It may be that we need to do some lobbying work together for that Insha'Allah.
2) B.M.I. Inc. Harmon Tower, One Harmon Plaza, Secaucus, NJ 07094. TELEPHONE 201-865-8549 Contact: Dr. Hussein Ibrahim.
INVESTMENT: They have leasing and housing funds similar to MSI. I believe they require a higher initial investment than MSI, but also have higher recent profit returns. They also need a few months notice for withdrawls I believe.
FINANCING: I think they help with leasing CARS & equipment, but not house.
3) AMANA Mutual Fund. c/o Saturna Capital Corporation, 1300 N. State Street Bellingham, Washington 98225. TELEPHONE: 800-SATURNA / 206-734-9900.
This is like a usual Mutual Fund of Wall Street with the additional restriction that the investment must meet Islamic principles (e.g. no stocks of alcohol/gambling etc., no bonds etc.). The religious consultant is NAIT (North American Islamic Trust), which I believe is affiliated with ISNA (Islamic Society of North America). It is a "No Load" fund i.e. no charges for buying and selling. The returns have been: 1993: 10.26%, 1992: 7.88%; 1991: 8.11%. Minimum Initial investment is $100. No minimum for subsequent investment. For a small fee, one can also get very convenient check writing facilities (for checks over $300). With complete liquidity, this comes close to getting the advantages of a usual Bank account!
I have heard that there are some more such companies in Canada. Disclaimer: Please directly confirm all the information presented here.
May Allah (SWT) guide us and give us the best in both the worlds. Ameen. Was-Salaamu Alaykum w.r. w.b.
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