Bank Nizwa, Real Estate Service sign home finance deal

Muscat: Bank Nizwa and Real Estate Service Co. have signed a Memorandum of Understanding (MoU) for financing Tawasul 1 homes.

“Providing luxurious houses at affordable prices, Bank Nizwa signed a Memorandum of Understanding (MoU) with Real Estate Service Co. offering their customers at project Tawasul 1 the opportunity to finance their dream homes at a competitive profit rate for property financing,” the bank said in a press statement.

Customers can finance their homes using various Shari’a-compliant instruments including Ijara financing and Diminishing Musharaka, which deliver the ultimate sense of comfort and offer ethical, quick and hassle-free solutions, it added.

Designed for customers looking to avail of ethical financing, the bank’s property financing product allow customers to acquire complete ownership of their home in full-compliance with the principles of Islamic finance. The latest competitive profit rate offers customers from across the Sultanate the opportunity to buy the home of their dreams at Tawasul 1 and offer their dependents complete security. Located in Ghala Heights, the project will consist of spacious apartments and retail shops with residential units starting from OMR45,000.

Arif Al Zaabi, Acting Head of Retail at Bank Nizwa said, “Our property financing offers personalised end-to-end services that meet the unique requirements of our growing customer base. The new competitive profit rate is ideal for individuals looking for Shari’a-compliant financing to own their property of choice in a seamless manner. Our agreement with Real Estate Service Company is part of our strategy to continue meeting the growing demand for Shari’a-compliant financing in Oman with a host of innovative solutions.”

Dawood Shalwani, Owner of Real Estate Service Company said, “Tawasul 1 is well connected to key commercial landmarks, offering convenient access to many highways including Muscat Highway, Sultan Qaboos Street or the coastal street. The project offers luxury and prime finishing, with various additional perks including of 7 elevators, a swimming pool, a 2-storey underground parking, as well as central systems for gas and garbage disposal. The project’s neighbourhood currently hosts a number of government and private institutions and is expected to attract more once ready. We are delighted to have Bank Nizwa offer our customers a competitive home financing scheme based on Islamic finance and look forward to continuing this collaboration in other projects.”

Bank Nizwa’s property finance solutions offer the options of Ijara/Forward Ijara scheme in which the bank buys a property and then leases it to the customer or Diminishing Musharaka where the customer and the bank enter into a partnership to acquire the asset and gradually the partner’s share in the partnership increases and the bank’s share reduces to zero.

Alternatively, with the Murabaha scheme, the bank buys the property and sells it to the customer for a profit on deferred payment bases.