Muslim Center’s Developer to Use Islamic Loan Plan
The developer of the planned Muslim community center and mosque near ground zero hopes to finance the bulk of the $140 million project using instruments developed to allow many Muslim investors to comply with religious prohibitions on interest.
Most of that core group, Mr. Gamal,the developer, expects, would be non-Muslim neighborhood residents and commuters. Muslims from around the region would make up a larger but less frequently visiting group — what he calls the “dinner and a date” crowd — many of them choosing the cheapest $375 family membership for cultural programs.
In sukuk construction projects, the investors own the real estate asset, and the developers lease it back; the investors’ profit on the rent is analogous to the yield on a bond. Some Islamic scholars do not accept the system, but it is widely used in places like Malaysia and Dubai.
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