Shariah compliance is founded on the principle of “social justice” where companies are required to adhere to Islamic laws, which include prohibition of liquor, pork and vice, as well as fair and responsible trading practices.
The Brazilian premium residential project is the first independent investment product to be eligible for Shariah-compliant funding. Previously, Islamic funds in Brazil have primarily been the domain of equity houses and banks such as Banco do Brasil SA.
“Having explored the possibilities provided by this region for the last two years, this certificate marks an important milestone for us,” says Arun Rama, Managing Director of Ritz Property Investment Asia Pte Ltd. “The regional Islamic finance market is very strong, and with our worldwide presence, our offering will enable us to tap a much larger funding pool.”
Islamic finance is fast gaining traction worldwide, and Shariah-compliant products have proven to be resilient even in volatile markets. Ratings agency Standard & Poor’s estimates that the global Islamic finance industry is worth about USD$1.8 trillion as at 2014, and is set to grow to as much as USD$3 trillion in the coming years with Malaysia being one of the industry’s key drivers.
“The demand has indeed increased exponentially over the last few years,” says Professor Ashraf Mohd Hashim, Chief Executive Officer of ISRA Consultancy. “(Shariah compliance) creates a unique portfolio offering for clients, allowing companies to expand in Southeast Asia, as well as the oil-rich Middle Eastern investors.”
The ICD Thomson Reuters Islamic Finance Development Indicator (IFDI) which measures the state of the Islamic finance industry globally, ranks Malaysia as its top market, valued at USD$166 billion in 2013, followed by Saudi Arabia (USD$36.4 billion), and the United Arab Emirates (USD$24.1 billion).
Professor Ashraf also adds, “Countries wishing to pursue Islamic finance make-overs are looking to Malaysia as a model, as it is home to the world’s largest Muslim population.”
About Ritz Property Investment Asia Pte Ltd
Established in Brazil in 2008, Ritz Property is a leading international development and investment company with offices in Natal, London (HQ) and Singapore. Over the last five years, Ritz Property has been focusing its efforts in Rio Grande do Norte and its capital city Natal in Northeastern Brazil. With a vision for excellence in lux-living solutions, Ritz Property is shaping a new skyline in Brazil and evolving into one of the most respected developers in this region, thanks to the strong collaborations with partners across the industry and with 4,000 acres of prime beachfront build land.
About Majestic Village
Majestic Village is a 75-hectare serviced land plot condominium development in Parnamirim, an up- and-coming residential area in Natal. The project is designed to appeal to the domestic market and Brazil’s rising middle and upper class population of over 90 million.