LARIBA

For Original Opinion, Fatwas &/or Quotes from Book Please Click Bellow:

For A Step-by-step Description of the Model with Its Shari’aa Foundation, Please Click Here.
Translation of Selected Fatwas of Al-Baraka Seminars Click Here

The model pioneered and patented by American Finance House LARIBA follows exactly the same steps outlined in two sources:

1. The original source, which was a series of Fatwas, in Arabic, issued since 1990 by a group of distinguished scholars including His Eminence Sheikh Yusuf Al-Qaradawi and were published by Dallah Al-Barakah; a pioneering Islamic Finance and Banking Company, and

2. The subsequent similar methodology outlined by Sheikh Muhammad Taqi Usmani, in English, in his book that were published in 1998.

However, IN ADDITION TO THE ABOVE, and that is what is UNIQUE, American Finance House LARIBA NEVER starts by taking the interest rate of the day and calls it the “rent agreed upon of the house to be financed!” We believe that this exactly the rent of money, which is Riba. American Finance House LARIBA start from the actual rent of a similar home in the same neighborhood. The house buyer calls 3 different real estate agents to get an actual market value of the rent of this house if it were to be used as an investment property. In addition, the LARIBA finance officer does the same. This way we obtain a “Marked-To-The Market” agreed-upon property market rent that we subsequently use in our UNIQUE model called “ISLAMABAD” to establish the rate of return on investment to decide if buying the property makes economic sense. THIS WAY WE COMPLETELY ARE SATISFIED THAT:

a) We DO NOT RENT money, which is Riba (Al-Riba Bi-Ainih.), and
b) The decision to buy the home makes economic sense. Hence; preventing the buyer & LARIBA from participating in an economic bubble.