Shariq Siddiqui, Indiana University

The growth of “halal mortgages” over the past 20 years has expanded financial access to homeownership for many Muslims. Halal mortgages provide interest-free loans in keeping with Islamic beliefs.

These mortgages are available in over 80 countries that have a significant Muslim population, such as Saudi Arabia, Iran, Malaysia, United Arab Emirates, Kuwait, Qatar, Turkey, Bahrain, Indonesia and Pakistan, where they account for the vast majority of the global US$3.9 trillion Islamic finance economy.

Access to halal mortgages has been growing in the United States. Until 1997, no financial institution was willing to offer halal mortgages, but in 2024, over 25 banks had made them available.

The Conversation asked Shariq Siddiqui, assistant professor and director of the Muslim Philanthropy Initiative at Indiana University, to explain halal mortgages.

What are halal mortgages?

Halal mortgages are a tool of Islamic finance and offer an equitable way to gain homeownership. They emphasize risk-sharing and mutual cooperation with the aim of checking unfair exploitation and wealth accumulation in the hands of a few. In such a system, money is a means of exchange rather than a commodity that generates profit.

What are the religious roots of Islamic finance?

The Muslim holy book, the Quran, and the sayings of the Prophet Muhammad, the Sunnah, prohibit riba, (interest), maisir (speculation) and gharar (uncertainty or uneven risk).

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For example, the Quran says, “O you who believe, do not eat up the amounts acquired through ribā (interest), doubled and multiplied. Fear Allah, so that you may be successful.”

Over time, Muslims have sought to develop systems that adhere to these rules. These include bonds that do not receive interest but are based on profit-sharing; socially responsible mutual funds that comply with ethical rules; and insurance that provide protection through a communal fund.

Since World War II, however, monetary policies in the global financial market are largely based upon interest.

How does Islamic financing work in modern context?

In the modern context, Muslims use contract law for economic activity and offer home mortgages without interest. For example, as an attorney, I would develop mortgage contracts that would allow buyers and sellers to transact without interest. This “mortgage” contract would be recorded with the county.

Traditionally, there are three kinds of halal mortgages. In the first, known as ijara, the bank purchases the property and leases it to the homeowner; the homeowner pays rent, principal payments and bank charges; the buyer’s share in the home remains the same until the entire loan is paid off.

Diminishing musharaka is another type of joint ownership plan between the bank and the buyer. The buyer makes principal monthly payments and pays bank charges rather than interest. With each principal payment, the ownership of the buyer increases and the bank’s ownership decreases.

In the third type, murabaha, the bank purchases the home and resells it immediately to the buyer at a higher price – termed as profit. The buyer typically pays a 20% down payment. Thereafter, the buyer makes fixed interest-free payments until the loan is paid off.

What is the availability of halal mortgages in the US?

In 2001 and 2003, respectively, Freddie Mac and Fannie Mae started buying Islamic mortgage products to provide extra liquidity in the U.S. Islamic finance market. These government-backed housing giants work under the conservatorship of the Federal Housing Finance Agency and are one of the principal means of bolstering homeownership in the United States.

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These mortgage buyers have grown to become the main investors in Islamic mortgages. For example, Freddie Mac has invested in Guidance Residential, one of the largest halal mortgage companies in the U.S.

What are the advantages?

These systems ensure that there is mutual risk-taking between the bank and the homebuyer. For example, should the homebuyer be unable to keep up payments, their prior principal payments are protected and not consumed by the interest. Furthermore, if the home loses value, both homebuyer and bank proportionally lose out on the principal value of the home.

They require greater transparency on costs, fees and responsibilities; both parties are required to work together and fulfill their obligations.

This reduces the risk of failures like the subprime lending crisis, when banks overvalued homes and financed mortgages that buyers could not afford, leading to a global recession in 2008.

What are the downsides?

Halal mortgages are more expensive and more difficult to enter into, as they require a down payment of at least 20%. Furthermore, they are not available in every state in the United States.

Additionally, many Muslims are unwilling to deposit their money in banks, if those banks are required to pay interest or earn part of their revenue based upon interest.

Shariq Siddiqui, Assistant Professor & Director of the Muslim Philanthropy Initiative, Indiana University

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This article is republished from The Conversation under a Creative Commons license. Read the original article.

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The unexpected benefits of creativity

(Family Features) Creative expression not only helps children convey their thoughts and feelings, but it also helps build the self-esteem and resilience needed to navigate life’s complexities. Creativity can even serve as a powerful catalyst for educational, emotional and cognitive growth.

Bolstering Kids’ Confidence

These findings are part of a Crayola-commissioned study conducted by YouGov of 702 6- to 12-year-olds that explored the connection between creativity and the development of essential life skills. The study revealed that when faced with challenges, children most often rely on their own creative ideas rather than depending on others or giving up. This instinct to turn inward for solutions demonstrates a natural tendency toward creative problem-solving.

More specifically, the study found 92% of participants believe being creative boosts their confidence, and 6 in 10 said participating in a creative activity gives them a sense of pride. What’s more, 65% of children shared that engaging in a creative activity makes them feel happy and excited to participate.

“Creative activities help children recognize their unique talents and develop a deeper belief in their abilities – giving children an incredible sense of joy and accomplishment,” said Cheri Sterman, senior director of education, Crayola. “By prioritizing creativity, we not only enhance children’s immediate happiness and sense of pride but also equip them with the confidence and skills they need for future challenges.”

The study supports the premise of Crayola’s Campaign for Creativity, an advocacy initiative championing the importance of childhood creativity as a critical life skill that empowers kids to reach their full potential and encouraging adults to nurture that creativity.

Parents and caregivers play a critical role in incorporating creative moments into their child’s day, whether it’s in a traditional form of artwork or reflected in a wide range of other activities, including storytelling, drama, dance, music and even sports.

Notably, more than half of survey participants (53%) shared they wished they could spend more time expressing themselves creatively with a parent or caretaker.

 “Engaging in creative activities together is a powerful way for parents and children to strengthen their bond while helping children grow into confident, capable individuals,” Sterman said.

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As a parent, you can tap into programs such as Crayola Creativity Week to gather ideas and inspiration for nurturing creativity that promotes development of essential life skills, including:

Self-Expression: Engaging in creative activities allows children to express their thoughts, feelings and identities. This expression helps them better understand themselves and fosters a sense of ownership over their ideas and creations.

Confidence: Sparking creative moments with kids allows them to build their confidence through self-expression, idea exploration and problem solving. This, in turn, empowers them to tackle challenges, think independently and develop resilience.

Problem Solving: In the study, children reported often turning to their own creative ideas to face challenges. Fostering creative problem-solving empowers children to navigate obstacles independently.

Self-Esteem: When children feel free to create without fear of judgment, they develop a sense of accomplishment and pride in their work, which can strengthen their self-esteem. Creative activities also help them recognize their unique talents and develop a deeper belief in their abilities.

Creative Capacity: The act of creating something can empower children. When they conceptualize and execute their ideas, they realize they have the skills to turn their thoughts into reality.

Resilience: The creative process involves experimentation and failure. Children learn that setbacks are part of learning, which enhances their resilience. This experience fosters a belief in their ability to bounce back and tackle future challenges independently.

You can discover inspiration for nurturing your children’s creativity, including free creativity resources at Crayola.com/CreativeMoments.

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SOURCE:
Crayola

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(Family Features) Freelancers, creatives and on-the-go leaders know they can only go as far as their tech takes them. Make sure you – or the loved ones in your life – can harness the power of productivity with the latest gadgets.

Whether you need to power more productive work hours or seek inspiration for “you” time, ignite performance with these laptops powered by the Snapdragon X Series. Multi-day battery life, unmatched performance and on-device AI capabilities allow you to power through tasks – business or personal – uninterrupted. Unlock exceptionally fast processing power and experience game-changing speed, power efficiency, enhanced security and simple device management.

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Streamline Creativity with a Smart Sidekick

Unlock the freedom of creativity with AI-powered performance on the ultra-slim Lenovo Yoga Slim 7x powered by Snapdragon X Elite. Dazzling 3K PureSight OLED display with 1,000 nits peak brightness and Comfort Edge Design are engineered for on-the-move creators. Built for next-gen AI experiences, it’s not just smart – it’s your creative sidekick that knows what you need before you do, streamlining tasks with leading on-device intelligence action. Amazingly slim and unexpectedly tough, find out how AI can match your A-game.

Take AI to New Heights

Push your AI experience to the next level with the Dell Inspiron 14 Plus powered by Snapdragon X Plus, built with a portable design backed by all-day battery life up to 15 hours. With groundbreaking on-device AI and powerful performance, it enables a faster and more efficient experience from virtually anywhere. It’s easy on the eyes with Dell ComfortView Plus, a tall 16:10 aspect ratio for more vertical space and less scrolling, a hardware low blue light solution and vibrant details from the QHD+ resolution, 400-nit brightness level and Dolby Vision.

Level Up On-the-Go Creativity

Designed for tech-savvy freelancers and on-the-go leaders, the HP OmniBook X powered by Snapdragon X Plus is built with a sleek design and the perfect synergy of AI-enhanced power and mobility. It’s sleek and versatile with multi-day battery life, taking productivity and creativity up a notch through style, function and mobility. Lightning-fast responsiveness provides top performance without sacrificing portability for work and play as you can stream up to 12 hours of video calls or binge 22 hours of your favorite shows.

Speed Up Productivity

Bringing intelligent AI solutions to your fingertips with features that effortlessly streamline settings, optimize your video experience and elevate communication, the Acer Swift 14 AI powered by Snapdragon X Elite delivers exceptional responsiveness with multi-day battery life. Peak performance with lightning-fast data speeds and responsiveness allows you to work efficiently and enables multitasking with ease. Bring work to life with a color-rich OLED display in a premium ultra-thin chassis with Copilot+, which helps boost productivity and security with on-device AI solutions.

Photo courtesy of Shutterstock (man and woman using laptop)

SOURCE:
Qualcomm

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