The property investment firm has announced a new deal with an Islamic wealth management group to deliver Shariah-compliant home finance products.
In a statement, DomaCom said it had entered into a heads of agreement with Islamic financial firm Crescent Group to deliver a new product range allowing Islamic investors to purchase property in a Shariah-compliant way.
Religious restrictions prohibiting investment in products that pay or receive interest mean Muslim investors are often unable to access traditional home loan finance, DomaCom said.
For this reason, they are traditionally under-represented in terms of property ownership, with just 15 per cent of Australian Muslims owning a home compared with 66 per cent of all Australians, according to statistics from consultancy firm DinarStandard.
The group was working with Crescent to leverage its fractional property investment model for products that would be compliant with Islamic financial rules, and would launch in the third quarter of next year.
“For several years, we have been working on a new option for our product that will deliver a solution to this growing market,” DomaCom chief executive Arthur Naoumidis said.
“We are very pleased to find a partner of the calibre and remarkable track record of Crescent Group to help us deliver this product to the Australian Muslim community.”
“We are excited to partner with DomaCom to deliver a globally unique solution that is authentic, compelling and competitive,” Crescent Group chief executive Talal Yassine said.
“In addition to a deep understanding of the Australian Islamic community, Crescent Group will help DomaCom to obtain the highest levels of Shariah certification of our products as well as sourcing the required institutional funding.”