Islamic Finance Institutions in the US have gained quite good popularity because of early planted seeds. Even though there were no Islamic Banks in the United States initially, community-based Islamic investment and finance companies played a significant role in developing the industry in North America in the 1980s.
Muslim Population in US
The law prohibits government statistics, census data from collecting religious affiliations to prevent discrimination based on religion. So the size of the Muslim population in the United States, and however, researchers estimate that it numbers nearly 3.45 million people.
Because legal immigration has favored individuals with advanced degrees, the estimated 2.8 million Muslim households are more extensive, younger, more affluent, and better educated than the average US or Canadian citizen. Compared to 26% of all Americans, 47% of all Muslim adults in the United States have a college diploma. With almost 70 nations represented in North America, the Muslim population is diverse. Despite these economic and intellectual advantages, Muslims in the United States are less likely than Hispanic or non-Muslim African Americans to own a home.
Islamic Finance Institutions in the USA
It is impossible to imagine Islamic Finance in North America without the contribution of the USA. The North American Islamic Trust (NAIT), created in 1973 as a non-profit endowment fund to help build, finance, and manage the growing demand for mosques, was one of the first Islamic financial organizations in the USA.
Leading Islamic Finance organizations in the USA:
Guidance Residential
In the United States, Guidance Residential specializes in Shariah-compliant house finance. Guidance Residential LLC, situated in Reston, Virginia, is a US-based Islamic home financing organization. The company began its operations in 2002, intending to provide Muslim American property buyers with Shariah-compliant, riba-free (interest-free or usury-free) home financing contracts. Guidance Residential is a wholly-owned subsidiary of Guidance Financial Group, a subsidiary of Capital Guidance, the parent firm. Furthermore, the company uses its Declining Balance Co-Ownership Program, or Diminishing Musharaka to finance residential properties.
Saturna Capital’s Amana Mutual Fund
The Amana Mutual Fund group of Saturna Capital manages around $525 million in Islamic equity mutual funds. Amana was the best-performing socially responsible mutual fund in 2005, thanks to a concentrate on oil stock investments. Saturna is the most established and profitable Islamic financial company in North America. The two Islamic Amana Funds are now drawing many non-Muslim investors due to their outstanding performance and are rising millions of dollars per month.
University Islamic Financial
UIF offers home, commercial, and community center financing. Faith-based financing programs with low monthly payments.
UIF offers multiple home financing options currently, such as:
- Installment Sale (Murabaha)
- Lease to own (Ijara)
- Partnership Program (Musharaka)
- Home Renovation (as part of Murabaha program)
Devon Bank
A community bank based in North Town on Chicago’s North Side, owned and operated by local merchants, has provided Murabahah and Ijarah home financings for a few years, initially in the Chicago area and now in over two dozen states. With a portfolio of almost US$20 million, it is the clear leader in Islamic commercial real estate finance. It also offers home equity and equipment lease credit, as well as house financing. It recently announced a contract to sell home financings to the Federal National Mortgage Association (FNMA), the largest US government-sponsored company, in addition to the deal with FHLMC (Federal Home Loan Mortgage Corporation).
Conclusion
We hope that Islamic Finance Institutions in the US will keep flourishing as there is an increasing number of Muslims in the country. To learn more about Islamic Finance in the US visit our academy.
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