Ali Dawah - November 14, 2024


NO RIBA HOUSE FOR MUSLIMS FINALLY!! - , Pfida’s Home Provision Scheme


Episode Stats


Length

40 minutes

Words per minute

213.90492

Word count

8,707

Sentence count

388

Harmful content

Misogyny

1

sentences flagged

Toxicity

4

sentences flagged

Hate speech

43

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

In this episode, we are joined by the founders of Faijah, Reza and Salman, to talk about their vision for the future of the Islamic finance industry and how they are building a home that is free of debt and completely free of riba.

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.200 As-salamu alaykum wa rahmatu wa barakatuhu, brothers and sisters and dear friends, hope you guys are well insha'Allah.
00:00:04.440 Today I'm here for a specific reason.
00:00:07.260 I'm a Muslim like you guys and alhamdulillah when it comes to the issue of riba,
00:00:11.020 this is something that we are all afraid of, it's something that we all try to abstain from.
00:00:15.240 And we don't need to go into the details of the severity of the sin.
00:00:18.880 We look for solutions, sometimes we can't find solutions.
00:00:22.180 And there are people who follow the fatwa that you can buy your first house on riba.
00:00:26.620 But obviously some of us hold the opinion that to be better on the safe side, alhamdulillah.
00:00:32.820 And sometimes Allah subhanahu wa ta'ala says in the Quran, in Surah Talaq Allah says in the Quran,
00:00:37.380 that if you fear me, I will give you a way out from places you can never imagine.
00:00:40.960 So I believe in this concept, Allah subhanahu wa ta'ala will always give us a way out.
00:00:43.860 And I am here with two amazing brothers, may Allah bless and preserve them.
00:00:47.600 They're called Faijah, usually I would pronounce this P-Faijah, but we'll come to that in a minute.
00:00:53.820 So we've got Brother Reza, assalamu alaykum.
00:00:55.600 As-salamu alaykum.
00:00:56.520 How are you?
00:00:57.900 Alhamdulillah.
00:00:58.480 Can you just introduce yourself a bit, please?
00:01:01.160 Yeah, I'll let Reza start.
00:01:02.220 Yeah, so I'm Rezaullah, I'm the CEO and founder of Faijah.
00:01:05.380 I founded Faijah back in 2016.
00:01:08.580 By background, I'm an actuary, which is effectively a complex statistical modeler.
00:01:12.540 I've worked in the London financial markets all of my life,
00:01:15.420 for the likes of PwC, the Bank of England, Lloyds of London Marketplace.
00:01:19.060 And I had a life-changing experience on Hajj in 2016,
00:01:22.580 when I realized that with the skill set that Allah has given me,
00:01:26.480 I have a duty to try and do some good with that skill set
00:01:28.840 and try and create some benefit for the Ummah.
00:01:30.920 So I gave up my role at the Bank of England as soon as I came back from Hajj, 1.00
00:01:34.000 and I started setting up Faijah,
00:01:35.200 with a view to providing a better way for providing home ownership,
00:01:40.320 particularly for Muslims,
00:01:41.740 that is completely free of debt and completely free of riba.
00:01:46.060 My name is Salman Hassan.
00:01:47.540 I'm the chief legal officer and also head of Sharia at Faijah.
00:01:51.200 I was about to say primary finance, that was our old name.
00:01:53.980 So my background is I'm an Islamic finance lawyer.
00:01:56.820 I only ever practiced Islamic finance.
00:01:58.360 I worked at an international city law firm, both here and in Dubai.
00:02:01.960 I worked and advised all the big international banks across Europe and the Middle East.
00:02:07.020 But I was very disillusioned with what's happening in the Islamic finance world,
00:02:11.100 because a lot of it is reverse engineering.
00:02:13.120 They take non-Islamic interest-bearing products and then, quote-unquote,
00:02:16.960 Islamize them, they sort of squeeze them into Islamic or Arabic-labeled contracts. 0.94
00:02:21.200 But really, the economic substance is exactly the same.
00:02:24.400 And so I was very disillusioned by that,
00:02:26.340 and I left my practice and started looking for a greater purpose,
00:02:29.640 something I could do to serve my community.
00:02:31.040 And then Raza came along and told me about his journey,
00:02:34.680 and I joined his journey, and here we are today.
00:02:37.360 MashaAllah, amazing.
00:02:38.200 So you guys want some Faijah for the community?
00:02:40.380 I mean.
00:02:41.040 Does the P stand for people?
00:02:43.420 It does.
00:02:44.120 I'm just guessing here, of course.
00:02:45.100 I don't know.
00:02:46.880 So, yeah, so the word Faijah, as many people will recognize,
00:02:50.520 it means benefit in many languages, in fact.
00:02:52.880 So, in Arabic, and in Turkish, also in Urdu, in Bengali, many different languages.
00:02:59.400 And the P actually stands for people, as you say,
00:03:01.460 because our intention is to always put people first and bring great father to the people.
00:03:06.360 MashaAllah, may Allah bless you guys, inshaAllah.
00:03:07.560 And I went on your page, because I didn't know about Sheikh Salman,
00:03:10.580 and to me, like, Sheikh Aetham is someone that I know as well, alhamdulillah.
00:03:16.220 And I thought to myself, yeah, I need to take this to Sheikh Aetham, see what he says.
00:03:19.760 And then I went on your website, I saw his picture, and I was like, say no more.
00:03:23.000 Okay, so let's get straight into it, because we're tight for time, inshaAllah.
00:03:28.520 So, tell us a bit about how does your product work?
00:03:31.640 Yeah, so to understand our product, you need to first understand the two extremes of home ownership.
00:03:36.240 So, on the one extreme, you've got a mortgage, where you borrow money from the bank,
00:03:40.100 you own the property on day one, and no matter what happens to that property, it's your headache.
00:03:44.600 You still owe hundreds of thousands to the bank.
00:03:47.000 Now, that is a straight-up loan, and any interest on that loan is straight-up river.
00:03:50.720 However, the opposite extreme is renting.
00:03:54.540 Where you don't own the property, the landlord owns the property.
00:03:57.180 Now, you don't take any of the headache in the property in that situation.
00:04:00.180 If the property is destroyed with a mortgage, you still owe the money to the bank.
00:04:03.460 If the property is destroyed or anything happens to it when you're renting, it's the landlord's headache.
00:04:07.420 You can move on and move to another property, you don't have to worry about it.
00:04:11.620 Our product is somewhere in the middle.
00:04:13.680 It's the concept of owning part of the home and renting part of the home.
00:04:17.780 So, rather than us lending money to the customer,
00:04:20.720 we buy the property with the customer as partners.
00:04:23.660 The customer can rent our share, and that is the only obligation.
00:04:27.040 So, the way to think of it is, imagine you're renting from a landlord.
00:04:30.000 Your only obligation to your landlord is to pay your rent on time every month
00:04:33.900 and take reasonable care of the property.
00:04:35.900 You can go to your landlord any time and say,
00:04:37.760 I'd like to buy your property from you.
00:04:39.580 And the landlord may say, yep, sure, you can buy it from me.
00:04:42.160 That's absolutely fine.
00:04:43.200 But you don't have to.
00:04:44.280 It's up to you if you want to.
00:04:45.580 And that's the same with our product.
00:04:47.460 So, maybe you own 20% or 50% up front.
00:04:50.860 We put in the remainder.
00:04:52.360 You just have to pay rent on the part of the property that isn't yours.
00:04:56.480 And if you want, at any time, you can buy us out as well.
00:04:59.400 You can offer to buy shares at any speed you like, or not at all.
00:05:04.200 You can just rent for the rest of your life if you like.
00:05:06.040 It's entirely up to you.
00:05:06.980 So, it's a very, very flexible approach.
00:05:08.620 It's based on genuine partnership, which means we share in the risks of partnership.
00:05:13.500 So, the acid test is what happens if the property is destroyed.
00:05:17.320 In a mortgage, you owe that money to the bank.
00:05:19.760 Even in an Islamic bank mortgage, you must immediately buy the bank's share off of them 0.76
00:05:24.000 for the asset which no longer exists.
00:05:26.060 Whereas in our partnership, we take the risk together.
00:05:28.640 If the property is destroyed, you take the loss on your share,
00:05:31.520 we take the loss on our share.
00:05:32.640 And that is what defines a true partnership.
00:05:34.960 Yeah, that's brilliant.
00:05:36.140 I'm going to come to more questions a bit later on that.
00:05:38.760 There's another product they offer, which is the...
00:05:41.680 Savings accounts.
00:05:42.780 Yes.
00:05:43.040 Just touch up on that, please.
00:05:44.180 Yeah, so we offer savings accounts as well.
00:05:46.580 Effectively, when you put money in a bank, that money in a conventional bank is used to lend with interest.
00:05:52.320 So, many people don't realise this.
00:05:53.540 When you put £100 in your bank account, you're actually agreeing to let the bank use your money to lend with interest.
00:05:59.440 And as Muslims, that should make us extremely uncomfortable.
00:06:02.700 Even Islamic banks, when you put money in an Islamic bank,
00:06:05.640 all banks, all regulated banks, this is how the banking system works,
00:06:10.400 they use that money to print new money.
00:06:12.840 And the act of printing new money devalues the very money you're putting into the bank.
00:06:17.360 And the people who suffer the most from that are the poor.
00:06:19.560 So, the banking system is actually designed to make the rich richer and the poor poorer.
00:06:24.080 So, the way our savings accounts work, there's no money creation.
00:06:27.800 There's no ribawi lending. 0.71
00:06:29.900 We use that money specifically to put people into homes in a debt-free, riba-free mechanism.
00:06:36.080 And you get a halal return on that in the form of a share of the income that we're receiving on those homes. 0.74
00:06:41.960 So, it's a very, very halal savings account.
00:06:44.140 You know exactly what your money is being used for.
00:06:46.680 And it's by virtue of the fact we're not printing new money.
00:06:50.240 It's not contributing to the widening of the rich-poor divide.
00:06:53.780 The other thing to think about is when you put your money in a bank account,
00:06:56.520 because that money is devaluing your money, it makes it harder for you to buy a house.
00:07:00.560 Because it actually...
00:07:01.900 It's a perpetual cycle.
00:07:02.360 It's a perpetual cycle.
00:07:04.080 So, actually, the very worst thing we can do is leave all of our money in a bank account.
00:07:07.680 Yes, banks serve a purpose.
00:07:09.220 We need our everyday cards to spend on every day and draw cash from the machine every day.
00:07:14.180 But leaving all of our savings in a bank account,
00:07:17.100 that is what's promoting the inflationary cycle,
00:07:22.080 which is making houses more and more unaffordable.
00:07:24.960 And actually, we as Muslims need to do better.
00:07:27.080 We need to be putting our money in places which don't price us out of our own homes
00:07:32.900 and which we know is only being used for halal and promoting wealth, particularly amongst Muslims.
00:07:38.720 Okay, so personally, for myself, if I have a certain amount of money in my account,
00:07:42.260 instead of it sitting there and the bank using it as riba,
00:07:45.080 which I do not want to, but it's because I have no other choice,
00:07:48.240 if I put it here, the only catch with you guys is that you can't deposit it.
00:07:53.120 It's an investment.
00:07:53.780 So it's a saving account, but it's not your typical...
00:07:56.300 So when you put it there, you get a return on it.
00:07:59.840 It's an investment because you're using it to invest in properties.
00:08:02.200 Correct.
00:08:02.660 Which is your other product, which if there's homeowners who want to buy a house.
00:08:05.940 So if you have money, which you guys are...
00:08:08.000 If there's anyone watching, it's like, okay, I have this much money
00:08:09.980 and it's going to be sitting in my account for one, two years.
00:08:13.160 Instead of it being used for riba, put it here, whereas it's an investment.
00:08:16.820 Yeah, so generally speaking, the worst thing you can do is leave all of your money sitting idle.
00:08:21.820 Well, as Muslims, what we need to do as a community is we need to skill up
00:08:25.480 and we need to get used to and comfortable with the concept of investing.
00:08:29.560 It's also equally not sensible to invest all of your money in one place.
00:08:33.340 So I'm not saying people should take all of their money and put it with fiver.
00:08:37.140 But there should be an allocation for something like this,
00:08:40.100 which is a low-risk alternative to a bank account.
00:08:42.480 There should also be an allocation, and we should get more comfortable with this,
00:08:45.260 to high-risk investments.
00:08:46.280 Maybe it shouldn't be a very large allocation,
00:08:49.220 but as you get more and more comfortable with investing,
00:08:50.960 this is what we as a community need to get better at.
00:08:53.160 The worst thing we're doing as a community is hoarding all of our wealth
00:08:56.400 in one place, in a bank account, where we don't benefit from that money,
00:09:00.700 the poor don't benefit from that money.
00:09:02.660 The only people who benefit from that money are the wealthy bankers
00:09:05.640 who are already wealthy enough.
00:09:07.000 We need to do far, far better as Muslims, 1.00
00:09:08.760 and that's why we've created our Fiverr Savings Account,
00:09:11.300 to provide one alternative to that.
00:09:12.960 Okay, that's where I'm going, alhamdulillah, and your name is very unique,
00:09:16.440 but the people are going to ask the question,
00:09:18.620 what is unique about other products, for example?
00:09:21.920 How is it different to other products?
00:09:23.640 Yeah, so let's compare to a conventional mortgage,
00:09:27.420 and also to an Islamic bank mortgage,
00:09:29.480 and also to other shared ownership products.
00:09:31.620 So in a conventional mortgage, as I mentioned, it's a debt.
00:09:34.260 You're borrowing money from the bank.
00:09:35.580 You have to pay that back with interest.
00:09:37.540 And most Sharia scholars will agree that's not permissible.
00:09:40.540 There is the exception where some scholars allow you
00:09:43.860 to buy one house on a mortgage.
00:09:46.180 If we take an Islamic bank mortgage,
00:09:48.140 the way it works is, rather than the bank lending you money,
00:09:50.820 the bank buys the property,
00:09:52.460 and you must now buy the bank's share out of them
00:09:55.500 over a set period of time for a set price,
00:09:57.520 no matter what happens to the property.
00:09:59.680 And this has Sharia grey areas in it, 0.99
00:10:02.420 and it does definitely create a divide in,
00:10:05.960 some Muslims are happy with it, 1.00
00:10:07.200 some scholars are happy with it,
00:10:08.200 and some are very, very against it.
00:10:10.580 Sheikh Haith Mal-Haddad, who has approved our product,
00:10:12.620 is one of those scholars who does not agree with that approach,
00:10:14.760 and Sheikh Salman will talk to that a bit more.
00:10:18.080 The next product is a shared ownership product,
00:10:20.600 which is actually the closest to our product.
00:10:23.180 But most shared ownership products,
00:10:24.840 what they do is they say,
00:10:25.800 right, you own part of the property,
00:10:27.440 you rent our share,
00:10:28.680 and you can buy us out over time,
00:10:30.520 which is exactly how our product works.
00:10:32.260 But the difference is,
00:10:33.120 most shared ownership products will say,
00:10:35.200 when you want to buy our shares from us,
00:10:37.680 we will revalue the property,
00:10:39.280 and you will buy them from us
00:10:40.360 at the current market value.
00:10:42.200 Now, we know in the UK,
00:10:43.540 property prices tend to increase
00:10:44.980 5% to 10% per annum, year on year.
00:10:47.460 Wages only tend to increase
00:10:48.700 1% to 2% per annum, year on year.
00:10:50.540 What this means is the property becomes
00:10:52.220 more and more affordable over time,
00:10:53.900 because wages don't keep up with property prices.
00:10:56.360 Now, what this means is,
00:10:57.480 most people on shared ownership schemes
00:10:59.240 will never be able to fully own their house.
00:11:01.380 That's a rigged system.
00:11:03.060 In a sense,
00:11:03.940 because it's like you're just,
00:11:04.860 again, in a perpetual cycle.
00:11:06.380 Like a rent trap.
00:11:07.260 Yeah, it's like a rent trap,
00:11:08.040 because as it's increasing,
00:11:10.020 you're not buying nothing.
00:11:10.840 You might be stuck on 50%
00:11:12.380 for the next 10 years.
00:11:14.620 The longer you wait to buy out the property,
00:11:18.860 the more difficult it becomes.
00:11:20.680 And that's the problem
00:11:21.700 with most shared ownership.
00:11:23.260 Are you telling me that
00:11:24.220 FIDA sticks to the price
00:11:25.380 that I was agreeing with?
00:11:25.920 Correct.
00:11:26.440 So what we, you know...
00:11:28.220 Why would you do that?
00:11:28.960 People would say,
00:11:29.460 why would you do such a thing?
00:11:30.460 Well, the question is,
00:11:31.980 why did I leave my very lucrative city job
00:11:35.080 to set this up
00:11:35.780 when I could make much more money
00:11:36.820 doing what I was doing?
00:11:38.020 And it's because I feel I have a responsibility.
00:11:40.060 As I said,
00:11:40.400 I had a life-changing experience on Hajj,
00:11:41.940 and I know Sheikh Salman
00:11:42.740 has the exact same vision.
00:11:44.960 So I set up FIDA
00:11:46.180 with a vision and a view
00:11:47.860 to try and increase wealth,
00:11:49.380 particularly amongst Muslims,
00:11:50.400 and increase homeownership,
00:11:51.440 particularly amongst Muslims,
00:11:52.480 because you do not need to be poor
00:11:54.180 to be financially excluded. 0.97
00:11:55.900 Muslims are financially excluded 0.93
00:11:57.300 from investment products
00:11:58.920 and finance products
00:12:00.480 just due to their faith
00:12:01.880 and due to the fact
00:12:02.840 that RIBA is not permitted.
00:12:04.860 So we decided, actually,
00:12:06.400 the only way to enact that vision
00:12:08.060 is to sell the property to customers
00:12:11.320 at the original cost
00:12:12.200 to make it affordable.
00:12:13.320 And we created our business model
00:12:15.040 around the rental income we receive.
00:12:16.580 So that's how we make our money
00:12:17.660 from the rental income.
00:12:18.980 We decided that we won't take
00:12:20.520 the upside on the property value,
00:12:22.480 with some exceptions.
00:12:24.080 So when the customer
00:12:24.820 is buying the property from us,
00:12:26.260 we sell it at the original cost
00:12:27.640 to make it affordable.
00:12:29.040 However, if the customer
00:12:29.880 wants to sell the property,
00:12:31.580 now they're actually making a profit
00:12:33.720 on the sale of the property.
00:12:35.000 And as partners,
00:12:35.920 we have taken risk in the property.
00:12:37.320 We are genuine partners.
00:12:38.440 It's fair in that situation
00:12:39.580 that we take our share of profit as well.
00:12:41.500 But as long as the customer
00:12:42.380 is buying it from us
00:12:43.140 to make it affordable,
00:12:44.080 we sell it at the original cost.
00:12:45.860 And that's our way
00:12:46.820 of enacting this vision.
00:12:48.260 Okay, that's brilliant.
00:12:49.040 I'm going to go to Sheikh Salman, 0.99
00:12:50.180 inshallah.
00:12:50.480 Before I do that,
00:12:51.020 because even when I'm giving dawah,
00:12:52.260 I try to stick
00:12:53.660 to simple terminologies.
00:12:55.680 Yeah?
00:12:56.240 I don't get the whole...
00:12:57.360 I just keep it very simple
00:12:58.880 so people understand.
00:13:00.120 So the agreement between,
00:13:01.780 let's say, for example,
00:13:02.480 there's a £100,000 house.
00:13:04.120 Argument's sake,
00:13:04.900 I bring £50,000.
00:13:06.800 Inshallah, I'll have that money one day.
00:13:08.820 And I'll give £50,000.
00:13:10.320 You guys put £50,000.
00:13:11.300 We have a house.
00:13:12.280 So the asal is, 0.93
00:13:13.480 we are going to rent it.
00:13:14.640 So let's say the rent
00:13:15.340 of that house is £1,000.
00:13:17.360 Because I own 50% of that,
00:13:20.040 and you own 50%,
00:13:21.280 when we rent it,
00:13:23.060 you take the rent from...
00:13:24.600 You ask me,
00:13:25.360 should we rent it out?
00:13:26.000 Would you like to rent it yourself?
00:13:26.840 I say, let's rent it out.
00:13:28.140 So we rent it out.
00:13:29.080 I take £500,
00:13:30.040 you take £500 every month.
00:13:31.460 So the way it works is,
00:13:33.800 let's say you're living in the property.
00:13:35.380 Let's say I'm not.
00:13:36.280 Okay, so you want to rent the property?
00:13:37.740 Yes.
00:13:38.260 So what we'll do is,
00:13:39.940 we'll say,
00:13:40.840 look,
00:13:41.300 our contract is for you
00:13:43.040 to rent the property from us.
00:13:44.560 Now, how you pay us your rent
00:13:45.800 is up to you.
00:13:46.480 You can have your own tenant
00:13:47.420 if you want.
00:13:48.380 You can rent it out
00:13:49.440 to somebody else
00:13:50.080 and you can pay us
00:13:51.500 from the rent you make
00:13:52.300 from your tenant.
00:13:52.880 It's entirely up to you.
00:13:54.120 And that means
00:13:54.760 you can rent the property out
00:13:55.720 if you want to.
00:13:56.600 Or you can live in it
00:13:57.580 and you can pay the rent yourself.
00:13:59.160 Okay, so the asal 0.96
00:14:00.320 is not that you rent it out.
00:14:02.000 The asal is that I rent it out.
00:14:03.360 Correct.
00:14:03.660 Or I rent it myself.
00:14:05.100 Sorry, I forgot the other one.
00:14:05.960 Okay, so meaning that
00:14:07.080 I can choose
00:14:07.920 to say I'm going to rent it out
00:14:09.240 to David.
00:14:11.000 Exactly.
00:14:11.100 And David pays rent.
00:14:12.520 I'll give you 50% share.
00:14:14.100 Do I give it
00:14:14.700 or are you guys managing that?
00:14:16.160 No, so the idea is
00:14:17.360 we don't want to be involved
00:14:18.520 in your business.
00:14:19.380 Okay.
00:14:19.680 So you have complete discretion
00:14:21.220 over who you want
00:14:21.940 to rent it out to.
00:14:22.980 And that's why we say,
00:14:24.340 look,
00:14:25.020 on the 50% of the property,
00:14:27.120 so normally the property
00:14:27.900 rents for £1,000.
00:14:28.940 On 50%,
00:14:29.860 it's £500.
00:14:30.920 So you just pay us
00:14:31.940 the £500 rent every month.
00:14:33.500 You can rent it to David
00:14:34.520 for £5,000.
00:14:36.180 It doesn't matter.
00:14:36.680 You just have to give us
00:14:37.600 £500 for our share
00:14:39.260 of the property.
00:14:39.580 Which is the value
00:14:39.800 of the rent of the area.
00:14:40.760 Exactly.
00:14:41.080 So if I say,
00:14:42.000 you know,
00:14:42.180 actually,
00:14:42.440 no,
00:14:42.520 I want to live in it.
00:14:43.720 Therefore,
00:14:44.160 what I do is
00:14:44.720 I owe you that £500
00:14:45.920 because I already
00:14:46.960 own the 50% of the rent.
00:14:48.080 Correct.
00:14:48.740 Simple.
00:14:49.380 Exactly.
00:14:49.840 Let's go to the Sharia side 1.00
00:14:50.700 with Dr. Salman,
00:14:51.500 inshallah.
00:14:51.920 Sheikh Salman,
00:14:52.380 may Allah bless you.
00:14:53.340 So what is your approach
00:14:54.580 to the Sharia compliance
00:14:55.760 when it comes to this?
00:14:56.600 Yeah.
00:14:57.020 So as I said
00:14:58.140 in the introduction,
00:14:58.840 I was very disillusioned
00:14:59.740 with the approach
00:15:00.720 taken by Islamic banks
00:15:02.280 and in the law firm.
00:15:04.220 I was,
00:15:04.960 as a lawyer,
00:15:05.440 able to pop the bonnet
00:15:06.320 of all of these contracts
00:15:07.120 and look underneath.
00:15:08.080 Most people don't have
00:15:08.740 the ability to do that.
00:15:10.380 And I could see
00:15:11.120 what they were doing
00:15:11.540 was reverse engineering.
00:15:12.920 They were taking
00:15:13.680 interest-bearing contracts
00:15:14.820 and doing exactly
00:15:16.800 the same thing
00:15:17.520 but just doing it
00:15:18.640 through a different
00:15:19.120 contractual structure,
00:15:20.480 if you like.
00:15:21.080 We call that
00:15:21.560 reverse financial engineering
00:15:22.660 and that's not
00:15:24.020 the approach we take.
00:15:25.140 So we take
00:15:25.600 a purist approach
00:15:26.580 and that goes to
00:15:27.960 not just the letter
00:15:29.240 of the Sharia 0.66
00:15:29.900 but also the spirit
00:15:31.040 of the Sharia.
00:15:31.600 So what is Allah's, 0.90
00:15:33.620 we call it
00:15:34.040 Qasd al-Sharia in Arabic.
00:15:35.280 What is the hikmah 0.99
00:15:36.400 or the wisdom
00:15:37.160 behind why Allah
00:15:37.980 has prohibited riba?
00:15:39.100 Because if Allah 1.00
00:15:40.120 has prohibited riba,
00:15:41.260 it's not just because
00:15:42.200 it's prohibited,
00:15:42.740 it's because it has
00:15:43.380 a harmful effect
00:15:44.060 on society and us
00:15:45.360 and everything, right?
00:15:46.440 But if we're replicating
00:15:47.540 that harmful effect
00:15:48.480 by quote-unquote
00:15:49.920 applying Sharia contracts
00:15:51.260 but doing exactly
00:15:52.260 the same thing,
00:15:52.960 the economic effect
00:15:53.980 on society
00:15:54.420 is going to be
00:15:54.820 exactly the same.
00:15:56.040 And so not only
00:15:56.940 does it have
00:15:57.480 the same harmful effect,
00:15:59.000 it has the fasad
00:16:00.860 or the masada
00:16:01.400 that non-Muslims 1.00
00:16:03.240 will look at
00:16:03.760 Islamic finance
00:16:04.520 and they do.
00:16:05.380 I've been in
00:16:05.900 embarrassing situations
00:16:07.160 with non-Muslim lawyers
00:16:08.140 who look at
00:16:08.900 Islamic finance contracts,
00:16:10.080 Islamic banking
00:16:10.580 and say,
00:16:11.560 well you're just
00:16:11.980 doing the same thing,
00:16:12.840 how is that Islamic?
00:16:14.480 And it's embarrassing
00:16:15.540 because this is
00:16:16.360 supposed to be a da'wah, 0.94
00:16:17.280 we're supposed to
00:16:17.780 show society
00:16:18.440 and the world
00:16:18.940 that Islam 0.98
00:16:19.780 has a solution
00:16:20.660 to a corrupt
00:16:21.880 financial system
00:16:22.800 but if actually
00:16:23.920 we're replicating
00:16:24.660 the corrupt outcome
00:16:26.180 of that financial system
00:16:27.200 through the
00:16:27.660 quote-unquote
00:16:28.000 Islamic financial system,
00:16:29.540 we're not only
00:16:30.320 doing a disservice
00:16:31.120 to the community
00:16:31.700 and society,
00:16:32.580 we're doing a disservice
00:16:33.460 to Islam.
00:16:34.440 This is harmful
00:16:35.600 for da'wah.
00:16:36.700 And so having studied
00:16:38.600 sharia,
00:16:39.000 because I studied
00:16:39.500 sharia out in the 0.97
00:16:40.280 Middle East
00:16:40.580 in Syria
00:16:41.240 back in the early
00:16:42.120 2000s,
00:16:43.340 I dedicated my life
00:16:44.880 to trying to live 1.00
00:16:45.980 that shit 1.00
00:16:46.260 and apply it 1.00
00:16:46.940 but practicing
00:16:47.960 as an Islamic
00:16:48.460 finance lawyer
00:16:49.060 I was kind of
00:16:49.560 doing the opposite.
00:16:50.720 And so our approach
00:16:51.740 and this is testament
00:16:52.940 to Alhamdulillah
00:16:53.960 our purist approach,
00:16:54.700 when we first went
00:16:55.420 to Sheikh Haytham
00:16:56.020 and presented
00:16:56.900 our product to him,
00:16:58.020 he asked us
00:16:58.800 one question
00:16:59.540 and he said
00:17:00.420 do you force
00:17:01.920 your customer
00:17:02.620 to buy your share
00:17:03.640 of the property?
00:17:04.260 So you bought it together
00:17:05.060 in the example you gave,
00:17:06.520 he said do you force
00:17:07.220 your customer
00:17:07.600 to buy your share
00:17:08.100 because that's what
00:17:08.560 puts the customer
00:17:09.160 into debt
00:17:09.680 because if we've
00:17:10.800 effectively sold
00:17:11.360 our share
00:17:11.640 to the customer.
00:17:12.860 Exactly, yeah.
00:17:13.960 And so look,
00:17:14.820 at the end of the day
00:17:15.280 in layman's terms,
00:17:16.000 let's put it in layman's terms,
00:17:17.320 if I put somebody
00:17:18.320 into debt,
00:17:18.880 regardless of how
00:17:19.560 I put them into debt,
00:17:20.260 I could put them
00:17:20.760 into debt by giving
00:17:21.380 them a loan.
00:17:22.140 I give you £100,
00:17:23.220 you owe me £100.
00:17:23.840 That's a simple loan.
00:17:24.940 Or I could put you
00:17:25.840 into debt by saying
00:17:26.980 let's enter into
00:17:28.100 a co-ownership
00:17:29.200 on the house.
00:17:29.840 It's a £100,000 house,
00:17:31.340 you put in £150,000,
00:17:32.880 we put in £50,000,
00:17:34.080 but immediately
00:17:34.940 in the same contract
00:17:35.940 we force you
00:17:37.160 to buy our share
00:17:38.180 for exactly £50,000.
00:17:40.460 So can you see,
00:17:41.560 the co-ownership
00:17:42.080 doesn't exist anymore.
00:17:42.960 We've sold our share
00:17:43.800 and you're going to
00:17:44.520 pay us instalments
00:17:45.260 over 20 or 30 years.
00:17:46.540 So now all the liability
00:17:47.680 is passed on to you,
00:17:48.600 you owe me,
00:17:49.340 the Islamic bank,
00:17:50.180 a money debt.
00:17:50.960 So we've created
00:17:52.520 a debt in a roundabout way.
00:17:53.900 Now if I charge you
00:17:55.040 more on top of that debt,
00:17:56.020 what have I done?
00:17:56.740 What is charging
00:17:57.340 more on top of a debt?
00:17:58.100 Isn't that the basic
00:17:58.780 definition of ribba?
00:17:59.580 Exactly, yeah.
00:18:00.240 So that's the approach
00:18:01.080 we take.
00:18:01.380 We take a really
00:18:01.840 purist approach
00:18:02.360 and we don't do that.
00:18:03.700 They're not giving
00:18:04.580 any fayda to the people,
00:18:05.560 are they?
00:18:06.760 Well, if you're
00:18:07.320 putting people into debt,
00:18:08.320 then you've got
00:18:08.860 the same negative effects
00:18:10.020 of debt on society.
00:18:10.920 Exactly,
00:18:11.320 and we want fayda 0.95
00:18:11.900 for the people.
00:18:12.740 Alhamdulillah, yes. 0.81
00:18:13.940 So, okay,
00:18:14.420 so the next question,
00:18:15.060 Sheikh, is
00:18:15.500 what makes fayda
00:18:16.780 home finance product
00:18:17.620 Sharia compliant? 0.68
00:18:20.960 So what we do is
00:18:22.280 we enter into
00:18:22.940 this co-ownership.
00:18:24.380 So, simple example,
00:18:25.620 we put in 50,000,
00:18:26.300 you put in 50,000.
00:18:27.060 Now at this point,
00:18:28.040 we're partners
00:18:28.660 in the property, right?
00:18:29.960 And the Sharia requires 0.99
00:18:30.840 that we have to share
00:18:31.900 the risk and the reward
00:18:33.200 of that partnership.
00:18:34.480 That's what happens.
00:18:35.260 If I sell you
00:18:35.880 my share immediately,
00:18:37.260 I'm not sharing
00:18:38.060 that risk or reward.
00:18:38.880 I'm just simply
00:18:39.380 putting all that risk
00:18:40.040 onto you.
00:18:40.320 That's the first thing, right?
00:18:41.600 So now we've said
00:18:42.640 that with the Islamic banks,
00:18:43.580 they sell you their share
00:18:44.300 and then they charge you
00:18:45.140 rent on that share,
00:18:46.360 rent on top of that debt
00:18:47.160 and that's not allowed.
00:18:48.100 What we do is we say
00:18:49.000 you don't have to buy
00:18:49.740 our share if you don't want to.
00:18:50.740 If you want to,
00:18:52.120 you can and our policy
00:18:53.320 is always to sell
00:18:54.840 our share to you
00:18:55.660 at the original
00:18:56.720 acquisition cost.
00:18:57.820 Why?
00:18:58.320 Because of that khidma, 1.00
00:18:59.820 that fayda, 1.00
00:19:00.380 because we want to facilitate
00:19:02.280 affordable home ownership
00:19:03.620 for the community.
00:19:04.280 We don't want to put them
00:19:04.920 into a debt trap
00:19:05.500 or a rent trap.
00:19:06.540 We've created
00:19:07.060 that middle path, yeah?
00:19:08.480 So you now have the option
00:19:10.160 but not the obligation
00:19:11.140 to buy our share of us
00:19:12.560 but until you've done that,
00:19:14.600 what your obligation is?
00:19:15.340 Because you're living
00:19:15.840 in that property
00:19:16.420 or you've taken responsibility
00:19:18.120 for that property
00:19:19.040 to rent out to another person,
00:19:20.300 you've taken a lease out
00:19:20.980 on that property
00:19:21.380 or our share,
00:19:22.360 you will then pay us rent.
00:19:23.760 That's your only
00:19:24.520 sharia obligation 0.97
00:19:25.500 on a month-to-month basis.
00:19:27.560 Okay, brilliant.
00:19:28.200 So the third question,
00:19:29.300 I think you already answered it,
00:19:30.060 what's wrong with
00:19:30.480 Islamic banking?
00:19:31.460 Yeah, we've kind of
00:19:32.480 explained it.
00:19:33.300 So what makes
00:19:34.600 fayda investment saving
00:19:35.520 account sharia compliance?
00:19:36.700 So that's the other product
00:19:37.360 that you guys use.
00:19:37.780 Yes.
00:19:38.480 How's the sharia compliance?
00:19:39.480 So what we do is
00:19:40.220 we've got this really
00:19:40.880 beautiful system.
00:19:41.720 We've effectively created
00:19:43.020 what I would call
00:19:43.920 a sort of housing cooperative
00:19:45.260 or a housing committee.
00:19:46.900 In the community
00:19:48.100 we have people
00:19:48.560 who club together
00:19:49.260 and they have
00:19:49.580 these credit committees.
00:19:50.660 We've kind of
00:19:51.320 writ that large
00:19:52.020 and we have a housing committee
00:19:53.580 where instead of people
00:19:54.960 putting their money
00:19:55.620 in the bank,
00:19:56.520 what the bank does
00:19:57.140 is use it for haram reasons
00:19:58.280 and what the bank does
00:19:59.200 is actually lends our money
00:20:00.380 back to us
00:20:00.920 and charges us more for it.
00:20:02.040 The bank is effectively
00:20:02.940 a middleman, right?
00:20:04.500 And then that's how
00:20:05.360 they fleece money
00:20:06.280 of society.
00:20:06.640 They take our money
00:20:07.880 and they put us
00:20:08.340 into debt
00:20:08.760 with our own money, right?
00:20:09.960 What we've done is
00:20:10.740 we've effectively opted out
00:20:12.680 of that system.
00:20:13.440 We say, right,
00:20:14.180 if the Muslim community
00:20:15.240 if we put our money
00:20:16.540 into Islamic financial institutions
00:20:19.280 that are genuine
00:20:20.120 and purely based on Sharia
00:20:21.960 then we can aggregate
00:20:23.160 our own capital
00:20:23.960 and we can help each other
00:20:25.760 buy our own homes
00:20:27.120 and cut out the bank
00:20:28.400 the debt-based system.
00:20:30.820 Do you see?
00:20:31.380 So that's effectively
00:20:32.380 what we've done.
00:20:32.740 So when people open up
00:20:33.980 an investment savings account
00:20:34.960 with us
00:20:35.380 we take that money
00:20:38.360 we use that money
00:20:39.380 to finance the homes
00:20:40.500 of the people
00:20:41.380 who are our customers
00:20:42.160 and then from that rental income
00:20:44.020 we take a share
00:20:44.920 for managing the scheme
00:20:45.840 and then we give a share
00:20:47.080 to our investors.
00:20:48.140 So what our investors
00:20:48.660 are getting
00:20:49.040 is a share
00:20:49.840 of the rental income
00:20:50.680 from a property portfolio.
00:20:52.660 Interesting.
00:20:53.220 Okay, that's interesting.
00:20:53.940 So what do they get yearly?
00:20:56.580 It will depend.
00:20:57.540 Yeah, I'll let Radha answer
00:20:58.800 because it will depend
00:20:59.360 on which account.
00:21:00.640 Yeah, so just to answer
00:21:01.700 that very quickly
00:21:02.220 we have different
00:21:02.680 savings accounts
00:21:03.360 and we've got
00:21:04.920 one savings account
00:21:05.800 aimed at people
00:21:06.720 looking to buy a home with us.
00:21:08.420 We have another
00:21:08.900 savings account aimed
00:21:09.820 at people who aren't
00:21:11.040 looking to buy a home
00:21:11.660 they just want to put
00:21:12.440 their money
00:21:13.340 and get the best return possible.
00:21:15.100 At the time of recording
00:21:16.320 that account pays
00:21:18.620 up to 4.7%
00:21:19.720 and that's paid
00:21:20.980 in the form of dividends
00:21:21.960 which have their own
00:21:23.000 tax-free allowance
00:21:23.840 in the UK.
00:21:24.800 So generally
00:21:25.200 unless someone is using
00:21:26.120 their dividend allowance
00:21:27.500 elsewhere
00:21:27.880 they can invest
00:21:29.020 up to £20,000
00:21:29.900 with us
00:21:30.380 completely tax-free.
00:21:32.440 And also
00:21:33.180 it's also worth
00:21:34.780 mentioning
00:21:35.240 the Zakat treatment here 0.92
00:21:36.380 and maybe Sheik
00:21:36.940 you can talk about
00:21:37.580 the Zakat treatment 0.79
00:21:38.220 on the investment as well.
00:21:39.340 Yeah, so firstly
00:21:40.040 we don't advise
00:21:41.220 our customers
00:21:42.540 on their Zakat treatment
00:21:44.340 because as you know
00:21:44.920 there are different
00:21:45.420 schools of opinion
00:21:46.880 within Islam
00:21:47.520 on the treatment
00:21:48.560 of Zakat
00:21:48.900 so we ask people
00:21:50.060 to get their own
00:21:50.800 sort of views
00:21:51.400 from the madhhab
00:21:52.540 or the imam
00:21:53.020 that they follow
00:21:53.480 but what we do
00:21:54.760 is we do provide
00:21:55.780 information on
00:21:56.640 what the possible
00:21:57.600 Zakat treatments 0.66
00:21:58.200 could be.
00:21:59.040 Now there is
00:21:59.460 a strong body
00:21:59.900 of opinion
00:22:00.320 within Islamic law
00:22:01.340 that if you buy
00:22:02.540 a property
00:22:02.960 and you rent
00:22:04.540 that property out
00:22:05.160 you activate
00:22:05.880 that property
00:22:06.460 for a useful
00:22:07.740 economic purpose
00:22:08.460 you've given
00:22:08.760 somebody else
00:22:09.220 a home
00:22:09.480 they're giving
00:22:10.200 you a rental income
00:22:11.060 there's an economic
00:22:11.860 purpose there
00:22:12.480 and the Sharia
00:22:14.060 in that view
00:22:15.160 says that
00:22:15.900 Zakat is not due 1.00
00:22:17.040 on the capital
00:22:17.780 amount of that
00:22:18.780 property
00:22:19.140 because if you
00:22:20.040 think about it
00:22:20.460 if I buy a property
00:22:21.080 I've got £100,000
00:22:21.760 savings
00:22:22.140 I buy a property
00:22:23.080 with that
00:22:23.560 and I rent that out
00:22:24.480 if I then next year
00:22:25.540 have to pay
00:22:25.960 2.5%
00:22:26.620 of that property
00:22:27.640 I might not have that
00:22:28.380 I might have to
00:22:28.900 sell the property
00:22:29.580 which is giving me
00:22:30.500 an income
00:22:30.860 and giving somebody
00:22:31.440 a home
00:22:31.740 in order to pay
00:22:33.000 the Zakat
00:22:33.300 so the Sharia 0.78
00:22:33.760 doesn't want to
00:22:34.320 put somebody
00:22:34.980 out of their home
00:22:35.440 and put me
00:22:35.780 out of my income
00:22:36.380 so what the Sharia
00:22:37.440 says you pay
00:22:38.300 Zakat on the 0.75
00:22:38.840 rental income
00:22:39.700 of that property
00:22:40.860 not on the price
00:22:42.280 that you bought
00:22:42.980 the property with
00:22:43.720 now if you think
00:22:44.680 about it
00:22:45.140 when people open
00:22:46.180 up an investment
00:22:46.680 savings account
00:22:47.320 with us
00:22:47.800 their money
00:22:48.960 goes into
00:22:49.400 buying properties
00:22:50.000 which are rented
00:22:50.460 out to our
00:22:50.860 customers
00:22:51.200 so the Zakat
00:22:52.340 treatment of
00:22:52.920 that whole portfolio
00:22:53.640 of those investment
00:22:54.260 savings accounts
00:22:54.900 is that
00:22:55.680 according to this
00:22:56.320 view
00:22:56.560 which is a
00:22:57.800 majority view
00:22:58.840 within the Sharia
00:22:59.400 that Zakat 0.92
00:23:00.380 is not due
00:23:00.940 now of course
00:23:01.540 we have many
00:23:02.260 of our customers
00:23:02.740 who say
00:23:03.000 I just pay
00:23:03.500 the Zakat
00:23:03.780 anyway
00:23:04.220 so what we
00:23:05.520 do is
00:23:05.780 when the
00:23:06.740 Zakat date 0.78
00:23:07.180 comes
00:23:07.480 and they
00:23:08.520 input the
00:23:09.200 Zakat date 0.78
00:23:09.580 on the app
00:23:10.020 that they
00:23:10.280 have with us
00:23:10.760 we send them
00:23:11.600 a notification
00:23:12.100 that this
00:23:12.660 is how much
00:23:13.660 you can
00:23:14.160 factor in
00:23:14.820 into your
00:23:15.480 own balance
00:23:15.940 sheet
00:23:16.200 in order
00:23:16.600 to calculate
00:23:17.080 your Zakat
00:23:17.460 and some
00:23:17.880 people pay
00:23:18.400 it and some
00:23:18.680 people don't
00:23:18.940 it's totally
00:23:19.440 up to them
00:23:19.860 so if they
00:23:20.860 don't
00:23:21.080 did you say
00:23:21.860 4.7%
00:23:22.720 ok so is that
00:23:24.240 including the
00:23:25.080 2.5%
00:23:26.000 of the Zakat
00:23:27.380 that they don't
00:23:28.240 need to pay
00:23:28.740 in that
00:23:29.200 4.7%
00:23:30.960 or is it
00:23:31.440 so that's
00:23:32.980 the return
00:23:33.860 that you
00:23:35.120 can expect
00:23:35.600 to get
00:23:35.920 to your
00:23:36.260 bank account
00:23:36.720 now if you
00:23:37.780 follow the
00:23:38.120 majority opinion
00:23:38.960 there will be
00:23:39.820 no Zakat
00:23:40.160 to pay
00:23:40.540 on that
00:23:40.880 but some
00:23:41.980 people
00:23:42.620 take a more
00:23:43.760 conservative opinion
00:23:44.620 and they pay
00:23:45.200 the Zakat
00:23:45.520 anyway
00:23:45.960 so for the
00:23:46.560 ones that
00:23:47.400 don't
00:23:47.780 do you
00:23:48.560 add that
00:23:48.960 2.5%
00:23:49.860 into the
00:23:50.380 4.7%
00:23:51.740 no so
00:23:52.140 the 4.7% 0.61
00:23:53.200 is the return
00:23:53.760 you get
00:23:54.060 to your
00:23:54.220 bank account
00:23:54.520 if you
00:23:54.800 imagine
00:23:55.320 comparing
00:23:55.760 to a
00:23:56.000 bank account
00:23:56.400 imagine
00:23:57.340 you've got
00:23:58.400 your money
00:23:58.680 in a bank
00:23:59.360 account
00:23:59.640 and the
00:24:00.400 bank is
00:24:00.740 paying you
00:24:01.080 4.7%
00:24:01.760 interest
00:24:02.280 your savings
00:24:04.000 in the
00:24:04.260 bank account
00:24:04.680 let's say
00:24:05.000 you've got
00:24:05.200 100,000
00:24:06.040 you're very
00:24:06.360 wealth
00:24:06.600 you've got
00:24:06.860 100,000
00:24:07.440 in your
00:24:07.660 bank account
00:24:08.120 you will
00:24:09.460 have to
00:24:09.720 pay Zakat
00:24:10.140 on that
00:24:10.460 full
00:24:10.720 100,000
00:24:11.320 every single
00:24:12.180 year
00:24:12.460 because you
00:24:13.320 are leaving
00:24:13.960 your money
00:24:14.240 idle and not
00:24:14.900 activating
00:24:15.320 your wealth
00:24:15.780 and this
00:24:16.420 is Allah's
00:24:16.800 way of
00:24:17.040 telling us
00:24:17.420 if you
00:24:17.640 can't
00:24:17.880 find
00:24:18.080 anything
00:24:18.320 useful
00:24:18.720 to do
00:24:19.040 with
00:24:19.400 your
00:24:19.540 wealth
00:24:19.760 at least
00:24:20.520 give
00:24:20.760 2.5%
00:24:21.500 to the
00:24:21.740 poor
00:24:21.900 from it
00:24:22.320 so
00:24:23.260 with our
00:24:24.140 savings
00:24:24.460 account
00:24:24.760 if you
00:24:25.220 put the
00:24:29.640 you don't
00:24:30.180 have to
00:24:30.480 pay 2.5%
00:24:31.320 on that
00:24:31.660 anymore
00:24:31.980 because your
00:24:32.780 money is
00:24:33.080 going directly
00:24:33.580 into property
00:24:34.100 which is
00:24:34.380 being rented
00:24:34.820 out to
00:24:35.180 customers
00:24:35.580 ok so
00:24:36.260 the
00:24:36.420 4.7%
00:24:37.300 you're
00:24:37.540 given
00:24:37.820 you get
00:24:38.580 to keep
00:24:38.920 all of it
00:24:39.340 and then
00:24:40.600 you've got
00:24:40.860 the
00:24:41.000 2.5%
00:24:41.840 that you
00:24:42.200 don't have
00:24:42.460 to pay
00:24:42.680 in Zakat
00:24:43.000 correct
00:24:43.680 so
00:24:44.780 in
00:24:45.620 equivalence
00:24:46.460 to get
00:24:48.520 the same
00:24:48.920 return
00:24:49.420 on a
00:24:50.600 bank account
00:24:50.980 or even
00:24:51.320 an Islamic
00:24:51.760 bank account
00:24:52.820 because Islamic
00:24:53.140 bank accounts
00:24:53.480 are also
00:24:53.900 effectively
00:24:54.500 a debt
00:24:54.780 based
00:24:54.960 contract
00:24:55.420 you need
00:24:56.360 a 2.5%
00:24:58.780 higher
00:24:59.160 return
00:24:59.580 to get
00:25:00.440 the same
00:25:00.900 real rate
00:25:01.320 of return
00:25:01.720 so
00:25:02.320 in another
00:25:04.060 bank account
00:25:04.620 if you're
00:25:05.020 earning
00:25:05.380 7.3%
00:25:06.980 right
00:25:07.680 you would
00:25:08.700 then net
00:25:09.200 2.5%
00:25:10.080 off of that
00:25:10.540 for Zakat
00:25:11.220 and you would
00:25:12.020 end up
00:25:12.300 with 4.7%
00:25:13.280 whereas with us
00:25:14.240 you get the
00:25:14.620 4.7%
00:25:15.380 and you don't
00:25:15.820 have to
00:25:16.060 net any
00:25:16.400 Zakat 0.55
00:25:16.660 off
00:25:17.020 so you're
00:25:18.300 left with
00:25:18.760 whatever you
00:25:19.740 take
00:25:20.040 you get
00:25:20.300 to keep
00:25:20.660 you don't
00:25:20.960 have to
00:25:21.160 pay
00:25:21.300 anything
00:25:21.580 else
00:25:21.820 on top
00:25:22.120 of it
00:25:22.360 so it's
00:25:22.700 an extra
00:25:22.980 2.5%
00:25:23.600 if you think
00:25:23.900 about it
00:25:24.260 it's like
00:25:25.040 7.
00:25:26.500 and you can
00:25:27.620 understand the
00:25:28.000 wisdom
00:25:28.300 we call
00:25:29.920 this
00:25:30.180 the
00:25:30.520 hikmah
00:25:30.900 of a
00:25:31.480 hukm 0.96
00:25:31.740 because some
00:25:32.340 people ask
00:25:32.660 why is
00:25:33.380 zakat not
00:25:33.760 doing this
00:25:34.140 shouldn't we
00:25:34.660 pay zakat
00:25:35.120 and it
00:25:35.340 goes to
00:25:35.620 the poor
00:25:35.880 it's a good
00:25:36.440 thing
00:25:36.720 and it's
00:25:37.280 really important
00:25:37.700 that we
00:25:38.020 encourage
00:25:38.460 it's a
00:25:38.820 pillar of
00:25:39.120 Islam
00:25:39.340 we encourage
00:25:40.180 the payment
00:25:40.500 of zakat
00:25:40.980 and people
00:25:41.340 who aren't
00:25:41.600 paying zakat
00:25:42.000 we encourage
00:25:42.420 them to
00:25:42.620 pay zakat
00:25:43.060 but there's
00:25:45.100 wisdom in
00:25:45.580 everything
00:25:46.080 that Allah
00:25:46.520 gives us
00:25:46.980 we don't
00:25:47.280 make these
00:25:47.620 rules up
00:25:47.960 Allah has
00:25:48.320 given us
00:25:48.660 these rules
00:25:49.040 and we've
00:25:50.140 come across
00:25:50.460 scenarios where
00:25:51.240 suppose somebody
00:25:52.800 is on a
00:25:54.380 middle income
00:25:54.820 or lower than
00:25:55.420 average income
00:25:55.980 and they're
00:25:56.780 really struggling
00:25:57.600 to save up
00:25:58.940 for a home
00:25:59.440 and they're in
00:26:00.080 a council property
00:26:00.680 or they're in
00:26:00.960 temporary accommodation
00:26:01.560 or they're
00:26:02.260 renting and their
00:26:02.840 landlord keeps
00:26:03.300 throwing them
00:26:03.640 out every year
00:26:04.460 and their
00:26:04.740 children have
00:26:05.160 to change
00:26:05.440 school and
00:26:05.960 it creates
00:26:06.380 trauma and
00:26:07.060 their wife
00:26:07.620 can't settle
00:26:08.060 down and
00:26:08.600 there's damp
00:26:09.240 there isn't
00:26:10.640 dignity in that
00:26:11.340 person's life
00:26:11.980 and that person's
00:26:12.820 struggling to
00:26:13.600 raise a deposit
00:26:14.480 to buy a home
00:26:15.640 on say an
00:26:16.000 Islamic finance
00:26:16.700 or Islamic bank
00:26:17.220 with us
00:26:17.860 now if they're
00:26:19.100 saving up
00:26:19.720 if every year
00:26:20.880 they have to
00:26:21.140 pay 2.5%
00:26:21.800 every 4 years
00:26:22.580 they're losing
00:26:23.060 10% of that
00:26:23.840 deposit
00:26:24.260 now that person
00:26:25.460 isn't in penury
00:26:26.280 they're not eligible
00:26:27.100 to receive zakat
00:26:27.800 they're not
00:26:28.240 in poverty
00:26:29.980 but that person
00:26:31.460 is really struggling
00:26:32.060 you see
00:26:32.740 and so
00:26:33.260 sometimes you can
00:26:34.100 see the
00:26:34.340 wisdom behind
00:26:35.440 Allah's laws
00:26:36.320 in situations
00:26:37.200 like this
00:26:37.680 where Allah
00:26:38.080 is saying
00:26:38.340 well actually
00:26:38.780 if you can
00:26:39.200 activate your
00:26:39.820 money into
00:26:40.920 a purpose
00:26:41.760 for economic
00:26:42.220 activity
00:26:42.700 give somebody
00:26:43.600 else a home
00:26:44.260 while you
00:26:44.620 wait
00:26:44.920 get a bit
00:26:46.360 of return
00:26:46.800 while you
00:26:47.180 wait
00:26:47.320 and increase
00:26:47.920 your deposit
00:26:50.120 then you don't
00:26:51.720 have to pay zakat
00:26:52.420 on that
00:26:52.780 and then Allah
00:26:53.560 is helping
00:26:53.900 that person
00:26:54.360 raise the deposit
00:26:55.240 to get into a home
00:26:55.860 you're helping
00:26:56.040 on a macro level
00:26:57.380 yeah exactly
00:26:57.960 okay so
00:26:59.240 what petition
00:27:00.040 does the customers
00:27:00.700 have
00:27:00.940 yeah so
00:27:02.720 the way we've
00:27:03.760 structured this
00:27:05.120 the customer
00:27:06.500 has what we call
00:27:07.640 an equity buffer
00:27:08.380 and they have a lot
00:27:09.220 of flexibility
00:27:09.700 in their payments
00:27:10.300 so I'll go
00:27:10.640 through that
00:27:11.060 let's consider
00:27:12.220 a conventional
00:27:13.020 mortgage
00:27:13.480 or even an
00:27:14.300 Islamic bank
00:27:14.780 mortgage
00:27:15.080 where your
00:27:15.460 monthly payment
00:27:16.000 is let's say
00:27:16.540 a thousand pounds
00:27:17.240 which is your
00:27:18.320 interest plus your
00:27:19.280 capital repayment
00:27:19.980 or within an
00:27:20.460 Islamic bank
00:27:21.000 your rent plus
00:27:22.120 your equity
00:27:22.520 purchase
00:27:23.000 both of those
00:27:24.000 elements are
00:27:24.420 obligatory in
00:27:25.220 both of those
00:27:25.680 situations
00:27:26.160 so in a month
00:27:27.820 your car breaks
00:27:28.880 down you have to
00:27:29.460 pay the mechanic
00:27:30.020 you've only got
00:27:30.600 eight hundred pounds
00:27:31.320 in your pocket
00:27:31.820 you can't meet
00:27:32.960 the thousand pounds
00:27:33.740 what that means
00:27:35.220 is you're in default
00:27:35.880 and the bank is
00:27:37.020 maybe going to give
00:27:37.640 you two months
00:27:38.100 payment holiday
00:27:38.680 to make good on
00:27:39.320 that default
00:27:39.780 a conventional
00:27:40.760 bank will charge
00:27:41.400 you interest on
00:27:42.020 that as well
00:27:42.480 in the middle
00:27:42.840 and if you can't
00:27:44.320 make good on
00:27:44.760 that shortfall
00:27:45.380 the bank is going
00:27:46.380 to take your
00:27:46.800 house away from
00:27:47.420 you
00:27:47.620 with our product
00:27:49.540 the rental element
00:27:51.120 is obligatory
00:27:52.340 the equity
00:27:54.820 purchase is not
00:27:55.620 so your target
00:27:57.360 monthly payment
00:27:57.960 may still be
00:27:58.520 a thousand pounds
00:27:59.160 which is your
00:27:59.560 rent plus your
00:28:00.600 target level of
00:28:01.320 equity purchase
00:28:01.980 to get to full
00:28:02.660 home ownership
00:28:03.160 but that bit is
00:28:04.800 optional
00:28:05.140 so in a month
00:28:06.120 maybe of that
00:28:07.820 thousand let's say
00:28:08.660 six hundred is
00:28:09.300 rent and four
00:28:09.940 hundred is
00:28:10.280 equity purchase
00:28:10.940 in a month
00:28:11.700 you've only got
00:28:12.140 eight hundred
00:28:12.500 pounds in your
00:28:13.000 pocket
00:28:13.220 you can choose
00:28:14.180 to pay your
00:28:14.600 six hundred
00:28:14.940 rent and only
00:28:15.560 purchase two
00:28:16.080 hundred pounds
00:28:16.520 of equity
00:28:16.860 that month
00:28:17.220 so it gives
00:28:17.900 you enormous
00:28:18.380 breathing room
00:28:19.200 in times of
00:28:19.980 difficulty
00:28:20.400 and you can
00:28:21.300 manage this
00:28:21.700 all through
00:28:22.040 our app
00:28:22.380 you can go
00:28:22.780 into our
00:28:23.060 app anytime
00:28:23.540 and change
00:28:24.020 your payments
00:28:24.400 according to
00:28:24.920 your needs
00:28:25.260 we give
00:28:25.940 enormous
00:28:26.480 flexibility
00:28:26.980 to the
00:28:27.440 customer
00:28:27.800 let's say
00:28:29.500 the customer
00:28:30.160 loses their
00:28:31.160 job and
00:28:31.940 can't even
00:28:32.400 afford to pay
00:28:32.920 their six hundred
00:28:33.440 pounds rent
00:28:34.020 well with
00:28:35.600 our structure
00:28:36.160 every time you
00:28:36.800 purchase equity
00:28:37.440 you get actual
00:28:38.900 share certificates
00:28:39.640 tangible proof
00:28:40.600 of your
00:28:40.940 ownership
00:28:41.260 and so
00:28:42.600 what you can
00:28:43.880 do is fall
00:28:44.380 back on what
00:28:44.880 we call your
00:28:45.340 equity buffer
00:28:46.000 in times of
00:28:47.300 difficulty if you
00:28:47.880 can't pay us
00:28:48.420 in cash you can
00:28:49.080 pay us from
00:28:49.520 your equity
00:28:49.940 buffer instead
00:28:50.580 and to put this
00:28:51.880 into perspective
00:28:52.520 an average
00:28:52.980 customer who
00:28:53.660 has ten percent
00:28:54.680 initial equity
00:28:55.860 deposit if you
00:28:56.580 like
00:28:56.800 if they lose
00:28:57.860 their job on
00:28:58.280 day one without
00:28:58.860 ever having
00:28:59.440 made a payment
00:29:00.020 that ten percent
00:29:01.340 equity buffer
00:29:02.080 will last the
00:29:02.740 average customer
00:29:03.500 two to four
00:29:04.820 years so that's
00:29:06.160 a huge amount
00:29:07.180 of security so
00:29:07.980 that if the
00:29:09.100 worst case
00:29:09.640 happens you
00:29:10.640 lose your job
00:29:11.280 you're down on
00:29:11.740 your knees the
00:29:12.140 last thing you
00:29:12.620 have to think
00:29:13.080 is how am I
00:29:13.580 going to pay
00:29:13.900 the bank
00:29:14.380 right you
00:29:15.660 know you've
00:29:16.040 got security
00:29:16.720 of the roof
00:29:17.300 over your head
00:29:17.820 so you can
00:29:18.300 focus on what's
00:29:18.900 important getting
00:29:20.100 back on your
00:29:20.580 feet finding
00:29:21.140 another job
00:29:21.640 and starting to
00:29:22.200 make payments
00:29:22.620 again because
00:29:23.020 we think it's
00:29:24.420 reprehensible that
00:29:25.940 when a customer is
00:29:26.740 down on their
00:29:27.240 knees going through
00:29:27.920 the hardest time
00:29:28.560 of their life
00:29:29.040 the bank then
00:29:29.940 comes and kicks
00:29:30.560 them out of
00:29:30.980 their house
00:29:31.360 we personally
00:29:32.360 think that
00:29:32.800 should be
00:29:33.080 illegal and
00:29:34.280 actually the
00:29:34.700 etiquette of
00:29:36.120 Islam teaches
00:29:36.760 us when your
00:29:37.920 customer is facing
00:29:38.820 difficulties you
00:29:39.420 grant them ease
00:29:40.140 rather than
00:29:40.540 further hardship
00:29:41.140 and that's the
00:29:41.640 approach we
00:29:42.020 take at Fiver
00:29:42.580 amazing so
00:29:44.980 are you guys
00:29:46.040 regulated by the
00:29:46.800 FCA and if
00:29:47.980 not why not
00:29:48.760 yeah really good
00:29:49.980 question so it's
00:29:50.920 important to note
00:29:52.020 that we went
00:29:52.560 through the full
00:29:53.260 regulatory process
00:29:54.100 with the FCA we
00:29:54.800 went through a full
00:29:55.580 two-year process
00:29:56.440 the FCA reviewed
00:29:57.940 every single part
00:29:58.740 of our product
00:29:59.240 and they
00:29:59.620 themselves concluded
00:30:00.440 it doesn't fall
00:30:01.460 within the
00:30:01.860 regulatory remit
00:30:02.660 the reason for
00:30:03.740 this is if you
00:30:04.280 look at
00:30:04.700 conventional
00:30:05.140 mortgages a
00:30:06.340 conventional
00:30:06.640 mortgage is a
00:30:07.240 lifelong debt
00:30:07.940 and many of
00:30:08.760 your listeners
00:30:09.200 may not be
00:30:10.400 aware the word
00:30:10.960 mortgage actually
00:30:11.860 means death
00:30:12.620 grip it comes
00:30:13.820 from French and
00:30:14.680 many of you
00:30:15.240 recognize the
00:30:15.840 word mort which
00:30:16.780 means death
00:30:17.320 so the word
00:30:18.100 mortgage means
00:30:18.580 death grip
00:30:18.980 because you
00:30:19.400 are effectively
00:30:19.920 in this grip
00:30:20.500 for the rest
00:30:20.960 of your life
00:30:21.460 so you have a
00:30:23.320 lifelong debt to
00:30:24.100 the bank if
00:30:24.640 that product is
00:30:25.380 the wrong product
00:30:26.060 for you it's
00:30:27.100 going to ruin
00:30:27.820 your life
00:30:28.320 without a doubt
00:30:29.160 that's why it
00:30:29.980 has to be very
00:30:30.560 heavily regulated
00:30:31.280 now take the
00:30:32.320 opposite extreme
00:30:32.940 when you're
00:30:33.260 renting from a
00:30:33.840 landlord if
00:30:34.940 you're renting
00:30:35.260 from a landlord
00:30:35.880 and it's the
00:30:36.340 wrong property
00:30:36.820 for you it
00:30:37.740 won't ruin your
00:30:38.220 life you can
00:30:38.700 simply move
00:30:39.220 on to another
00:30:39.640 property I'm
00:30:40.600 not saying it's
00:30:41.100 easy but it's
00:30:42.400 definitely not going
00:30:43.180 to ruin your life
00:30:43.800 in the same way
00:30:44.320 a lifelong debt
00:30:45.020 will and that's
00:30:46.080 why landlords do
00:30:47.020 not need to be
00:30:47.640 regulated by the
00:30:48.420 FCA because
00:30:49.540 there's much less
00:30:50.380 risk to the
00:30:50.940 consumer our
00:30:52.180 product as I
00:30:53.120 explained earlier
00:30:53.880 is effectively a
00:30:54.700 landlord tenant
00:30:55.300 product you're
00:30:56.180 simply renting
00:30:56.900 you have no
00:30:57.900 debt and because
00:30:59.020 there is no
00:30:59.540 debt it's not
00:31:00.480 going to ruin
00:31:00.980 your life you
00:31:01.580 can stop change
00:31:02.320 move on any
00:31:03.000 time you like
00:31:03.540 so the FCA
00:31:04.580 themselves concluded
00:31:05.460 actually this does
00:31:06.460 not need to be
00:31:07.020 regulated and
00:31:07.620 actually after year
00:31:08.940 one they came to
00:31:10.240 that conclusion
00:31:10.800 and funny story we
00:31:11.960 went to them and
00:31:12.520 said why don't you
00:31:13.180 regulate us anyway
00:31:14.040 because it will give
00:31:15.160 confidence to our
00:31:15.920 customers so we
00:31:16.940 went through another
00:31:17.400 whole one year
00:31:18.240 process with them
00:31:18.960 and they concluded
00:31:19.680 look we're not set
00:31:20.720 up to regulate
00:31:21.400 entities that don't
00:31:22.820 need to be
00:31:23.160 regulated just like
00:31:24.400 if a landlord went
00:31:25.240 to the FCA and
00:31:25.940 said why don't you
00:31:26.440 regulate me
00:31:26.880 the FCA would
00:31:27.300 say no you're a
00:31:27.880 landlord you don't
00:31:28.440 need to be
00:31:28.820 regulated and we
00:31:29.940 are in the same
00:31:30.420 situation
00:31:30.960 so what if
00:31:32.880 FIDA goes
00:31:35.000 bust
00:31:35.300 yeah really good
00:31:37.080 question so you
00:31:38.760 can think of FIDA
00:31:39.480 like the landlord
00:31:40.200 right if FIDA as
00:31:43.340 an entity were to
00:31:44.060 go bust
00:31:44.520 actually from the
00:31:46.180 customer's perspective
00:31:46.940 there's no one to
00:31:47.580 collect their rent
00:31:48.140 anymore so funnily
00:31:49.660 enough it just means
00:31:50.800 they've got no one
00:31:51.400 collecting their rent
00:31:52.120 anymore but the
00:31:52.880 house is still theirs 0.83
00:31:54.060 they still have a
00:31:54.760 lease they still have
00:31:55.540 the right to live in
00:31:56.260 the property just
00:31:57.420 means there's no one
00:31:57.940 to collect their
00:31:58.400 rent but we've
00:32:00.120 actually structured it
00:32:01.200 very specifically to
00:32:02.820 protect customers in
00:32:03.740 that situation so all
00:32:05.920 of the houses are owned
00:32:07.220 by a separate entity
00:32:08.180 rather than being owned
00:32:09.020 by FIDA that separate
00:32:10.500 entity is when you open
00:32:11.720 a savings account with
00:32:12.520 us you get shares in
00:32:13.360 that entity when you're
00:32:14.440 a customer your shares
00:32:15.480 transform into your
00:32:16.820 partnership rights over
00:32:17.720 the property and that
00:32:18.940 means this entity that
00:32:19.960 owns the properties is not
00:32:21.680 owned by FIDA FIDA just
00:32:23.000 has a one penny share in
00:32:24.040 it which allows us to
00:32:24.880 manage it but it's
00:32:26.080 actually owned by our
00:32:27.180 customers and our
00:32:27.920 savings account holders
00:32:28.860 which means think of
00:32:30.620 think of a very simple
00:32:31.660 case where you own a
00:32:32.540 company and you have an
00:32:34.220 accountant managing your
00:32:35.220 company for you if
00:32:36.580 anything happens to your
00:32:37.540 accountant you still own
00:32:39.500 that company you still
00:32:40.400 own those assets you
00:32:41.520 don't make any loss you
00:32:42.680 can find another
00:32:43.320 accountant to manage
00:32:44.220 your company for you
00:32:44.960 and this is exactly how
00:32:46.260 our structure works
00:32:47.080 FIDA is really like an
00:32:48.600 accountant managing the
00:32:49.880 company on behalf of our
00:32:51.860 customers and savers but
00:32:53.480 if anything was to happen
00:32:54.400 to us we're no different
00:32:55.500 to an accountant managing
00:32:56.520 your company it's still
00:32:57.940 your company it still
00:32:59.280 belongs to you
00:33:00.020 okay so does that answer
00:33:01.500 the question of what is
00:33:02.220 the likelihood of the
00:33:03.200 funding vehicle goes
00:33:04.320 going bust
00:33:04.820 right no so that's a
00:33:06.200 separate question so the
00:33:07.300 the entity that owns all
00:33:08.440 of the underlying
00:33:08.920 properties
00:33:09.600 yes account yeah
00:33:10.640 then yeah yeah
00:33:11.640 so so what causes
00:33:13.680 companies to go bust
00:33:14.840 it's really debt when the
00:33:16.460 company cannot pay the
00:33:18.000 money that it own that it
00:33:19.340 owes to its creditors
00:33:20.600 right now this funding
00:33:22.280 vehicle first of all it's
00:33:24.600 important to clarify all
00:33:25.660 of FIDA's expenses are
00:33:26.960 covered by FIDA itself
00:33:28.140 so this funding vehicle
00:33:29.660 isn't responsible for
00:33:30.780 those expenses
00:33:31.440 FIDA is a separate
00:33:32.660 company that covers its
00:33:33.540 own expenses
00:33:34.160 the only expenses in this
00:33:36.460 funding vehicle there is
00:33:38.040 no by the way there is
00:33:38.780 no debt in any part of
00:33:40.240 our structure not at the
00:33:41.360 FIDA level not at the
00:33:42.300 funding vehicle level
00:33:43.060 so debt is the number one
00:33:44.960 thing that causes
00:33:45.560 companies to go bust and
00:33:47.000 there's no debt anywhere in
00:33:48.000 our structure
00:33:48.460 alhamdulillah so at the
00:33:50.040 funding vehicle level the
00:33:50.960 only expenses are actually
00:33:53.080 bank account charges which
00:33:54.460 are very very minimal and
00:33:55.940 once a year we get that
00:33:57.400 entity audited because
00:33:59.520 again it's good good
00:34:01.080 practice to have an
00:34:01.920 independent accountant
00:34:02.820 audit that company and
00:34:04.360 make sure it's running
00:34:05.000 smoothly and make sure the
00:34:06.640 numbers are all stacking up
00:34:07.760 and that gives confidence to
00:34:09.020 our investors and
00:34:09.640 customers as well but those
00:34:11.560 are basically the only
00:34:12.480 expenses of that company
00:34:13.640 and as a result it's what
00:34:15.080 you would call bankruptcy
00:34:16.840 remote because it has very
00:34:18.300 very few creditors so the
00:34:19.940 likelihood of that we would
00:34:21.760 hope would be extremely
00:34:22.800 remote
00:34:23.260 so repeat that again the
00:34:24.940 last bit the risk of
00:34:26.980 so so the the number one
00:34:29.460 thing which causes companies
00:34:30.660 to go bust is debt and not
00:34:33.140 being able to pay its
00:34:34.120 creditors now in this
00:34:35.820 instance the funding company
00:34:37.900 has no debt which is the
00:34:39.840 biggest reason for companies
00:34:40.880 going bust and its creditors
00:34:42.320 are very very few it's the
00:34:43.900 bank account charges and
00:34:45.440 once a year the auditor
00:34:46.300 fees in the worst case
00:34:47.600 scenario the auditor fee is
00:34:49.520 you know something which
00:34:50.700 in that scenario wouldn't
00:34:52.100 have to be paid right
00:34:53.060 that's something we elect to
00:34:54.480 do yearly right and the
00:34:56.260 bank account charges are
00:34:57.140 very very minimal so it has
00:34:59.300 very very few creditors and
00:35:01.280 therefore it should be very
00:35:02.620 very bankruptcy remote
00:35:03.580 okay so before we go to
00:35:05.620 how people can apply so if
00:35:07.600 somebody buys a share of the
00:35:09.720 house I heard I don't
00:35:11.800 correct me that they're not
00:35:13.320 actually buying the share of
00:35:14.460 the house but the share of
00:35:15.180 the company is this true or
00:35:16.840 is there a is there a clear
00:35:18.540 contract that shows that
00:35:19.840 this individual who buys
00:35:21.060 50% of the house owns 50%
00:35:23.100 of the house yeah yeah so
00:35:24.540 the way the way it works is
00:35:25.660 imagine you let's take a
00:35:27.200 simple example you could buy
00:35:28.560 a house and you could buy
00:35:29.600 it directly and have it in
00:35:30.720 your name or you could set up
00:35:32.960 a company and then have the
00:35:34.360 company buy the house so you
00:35:35.680 fully own the company and
00:35:37.220 then the company buys the
00:35:38.120 house so you own the house
00:35:39.120 but indirectly through the
00:35:40.120 company right now let's
00:35:42.400 let's now take it take it
00:35:43.840 as though you're buying the
00:35:44.980 house in shares with us so
00:35:46.060 we set up a company
00:35:46.680 together and you put in
00:35:48.140 50,000 we put in 50,000 to
00:35:49.600 the company and then the
00:35:50.820 company owns that property
00:35:52.720 right but because you have a
00:35:54.320 share in the company and we
00:35:55.240 have a share in the company
00:35:55.980 we are effectively co-owners
00:35:57.600 of that property now if you
00:35:58.940 scale that up and you say
00:36:00.200 right let's have one company
00:36:01.280 which will own all of the
00:36:02.660 properties for all
00:36:03.440 something that they sell the
00:36:04.440 bürgade oil or whatever
00:36:05.440 but that's another company
00:36:06.380 like you backfume of the
00:36:06.860 company and
00:36:08.140 what do you have to do it
00:36:10.680 this is in the world so i
00:36:11.160 the company would wear to
00:36:12.300 bring the house to go you
00:36:13.120 like so i have the spot at get
00:36:14.380 '?
00:36:15.220 so i don't know what if you
00:36:16.100 just want to outreach
00:36:18.440 you'll be able to put it all
00:36:19.320 so you can make for the
00:36:20.780 which is so great um about
00:36:21.260 probably all of the
00:36:23.120 things we keep on with if you
00:36:24.060 should be able to work
00:36:24.680 especially if the farm
00:36:26.280 every you deutsch
00:36:27.520 that it's a Hmong 1.00
00:36:30.060 it's actually robotic
00:36:31.740 Okay. So basically, even though it seems like you're investing in the shares of the company,
00:36:40.820 it's actually owning their specific property.
00:36:44.040 That's right.
00:36:44.400 And then they are buying out the shares of, let's say, individuals in the savings accounts
00:36:49.500 money has been used to buy that house. They are solely buying those shares out.
00:36:53.620 Yeah. So the way the deed works is it says if it's a £100,000 property and you've got
00:36:58.600 £50,000 of shares, your partnership rights are 50%. That means your rent is reduced by
00:37:06.140 50% because you're not paying rent on the share that you own. It means if the property
00:37:10.220 is sold, you have a right to 50% of the proceeds. So it dictates your partnership rights based
00:37:15.220 on how many shares you have in the company. And actually, just by having shares in the
00:37:19.740 company, you are one of the ultimate beneficial owners of that property anyway, because you
00:37:23.920 are one of the owners of the company that owns the property.
00:37:26.160 But specifically, my cut of the share would be made clear on that specific property. And
00:37:32.780 then you might have thousands of other people who's...
00:37:35.700 Okay.
00:37:36.500 And so, simple example, with the £100,000 house, once your shares in the company reach
00:37:41.820 £100,000, at that point, we would transfer the property to you. And then that's the end
00:37:47.380 of the contract.
00:37:48.320 Okay, interesting. So then people are going to ask, for those who are happy with the answers,
00:37:52.100 how do they apply?
00:37:54.040 Yeah, so it's important to mention here that we do have a waiting list. And as you can imagine,
00:37:59.760 this is a radically refreshingly different product. So we've got a huge, huge amount of
00:38:03.820 demand. Alhamdulillah. So anybody can sign up to the waiting list by just going onto the
00:38:09.180 website and signing up. But the waiting list is quite long. We do have a shortcut. And basically,
00:38:16.040 anybody who opens a savings account with us, specifically a home savings account, so a
00:38:20.920 savings account for people looking to buy homes, they're feeding into the system. And
00:38:25.540 they're supporting this giant committee structure that Sheikh Salman talked about. And so we reward
00:38:29.520 them by serving them quicker. So if you just want to get on the waiting list, that's fine.
00:38:34.480 But if you support the system and put your deposit in sooner and allow your deposit to be used
00:38:40.640 to help others while you wait, then what we do is we promote you onto what we call a priority
00:38:45.560 waiting list and we serve you quicker. And there's full details of that on our website,
00:38:49.020 inshallah. And then when your turn comes, we reach out to you and say, okay, your turn is
00:38:52.440 here. Now it's time for you to start looking for a house. And then we take you through that
00:38:55.660 whole journey.
00:38:56.760 Okay, interesting. I mean, I don't really have any other questions to ask. Personally, like
00:39:00.780 I'm personally satisfied. And obviously with this stuff, because as public figures, we're
00:39:07.080 very careful who we associate with, who we work with when it comes to other dais, etc.
00:39:13.300 Because at the end of the day, not that we're anything special, but it's just affiliation.
00:39:17.220 So when it comes to this, when it comes to people's money as well, like I said before,
00:39:20.780 you know, Dr. Salman, Sheikh Salman, may Allah bless him, yourself, Sheikh Haytham being
00:39:25.040 behind this. I've asked the relevant questions. I don't see any, you know, I would say I've,
00:39:30.220 I believe, believe that I've tied my camera to a certain extent. But the Prophet ï·º said to
00:39:34.660 the man who was going to, I think, to the masjid, Sheikh Haddad, I can't remember. And
00:39:38.540 he left his camel untied. And he said, I found my trust in Allah. Well, the interesting thing
00:39:42.520 in those times, people had more tawakud than doing their work. Today we have people who
00:39:47.380 are not just tying the camel, their kamula is dead. Because they're too focused on thinking 0.97
00:39:50.860 it's in their hands. And the camel has sadly died. And they have not tawakud sadly. So 0.67
00:39:55.180 I believe I've tied my kamula, Abu Bidu, and Istikhara. And after Istikhara, if this video
00:39:59.600 was public, that means I trust it. You know, Alhamdulillah, I've spoken to you guys and we assume
00:40:03.800 the best of the believers. May Allah bless you guys and preserve you guys for trying
00:40:06.880 to benefit the ummah. I do see that in you guys. And yeah, may Allah bless you guys.
00:40:11.940 And guys, if you're watching it and you are convinced by it, I mean, you can ask further
00:40:16.720 questions. You can get in contact with them. We'll put all the contact details at the description
00:40:19.420 box below. And yeah, come here, ask more questions if you would like to, inshallah.
00:40:24.460 Those are the main questions I have asked. And yeah, that's all I have to say, brothers and
00:40:28.060 sisters. And yeah, check it out. And maybe you can buy a first house with them. Or if
00:40:32.720 you have some kind of money sitting around, you can invest in the savings account. And
00:40:37.260 let that inshallah benefit you and your family. Till next time. As-salamu alaykum wa rahmatullah
00:40:41.720 wa barakatuh.