As Inveniam forges partnerships in the Middle East, we’re aware of a changing landscape. Ratings agency Moody’s notes a shift to more Shariah-compliant finance as corporations and households demand local products such as “sukuk” – an Islamic financial certificate, like a bond in Western finance, that complies with local religious law commonly known as Sharia.
“Murabaha”, or cost-plus financing, is another key tool as it allows a beneficiary to transfer the title deed of the asset in their name. Murabaha loans are driving a mortgage boom which should one day lead to securitization & trading in secondary markets. In Riyadh, there’s a goal of boosting home ownership rates to 70% by 2030.
These assets will be digitally native – i.e. created, processed, and traded digitally. The underlying performance data will be anchored to the blockchain giving institutional asset owners a clear picture of their holdings’ worth through permissioned access to digitally credentialed, private data. These market participants need tools to harness the mountains of data modern properties throw off. Inveniam is bringing an operating system for private data to the Mideast – leading to a mortgage industry that includes the trading of Sharia compliant mortgages.