When it comes to money Islam has its own set of rules and values. And one Moseley man is determined to make the Midlands the home of Islamic finance.
Sultan Choudhury is the Executive Chairman of Offa, an Islamic finance property company based in Solihull. A trailblazer for Islamic finance in Britain and former CEO of the UK’s first Islamic bank, Choudhury claims non-Muslims are increasingly flocking to use Islamic finance.
He claims it is more than just not being allowed to pay or charge interest, the most common preconception. The proud Brummie Muslim reveals Islamic finance revolves around clean ethics and values.
Read more: Takeaway and car dealer named by HMRC on list of Midlands tax dodgers
Join our Brummie Muslims WhatsApp group here
This is thanks to a faith based system that not only doesn’t charge interest, but also refuses to invest in sectors that harm society like alcohol, tobacco and the arms trade. Choudhury shares why he sees Islamic finance as an ‘antidote’ to negative perceptions of Islam, and the surprising origins of Islamic finance right here in Brum.
“I grew up in Small Heath and moved to Mosely living there ever since,” he said, “I went to school in Aston and my parents were Bangladeshi immigrants. I am also a Birmingham FC season ticket holder and my business partners are Brummies too.
“We are four local lads I guess coming together to make sure there are new opportunities for those who want products that adhere to their faith. I was part of the team that built the first Islamic bank in the Western world.
“Most people have to leave Birmingham to build a financial career, I managed to keep it in Birmingham.” Joining Offa as Executive Chairman in 2020, Choudhury and his team set out to modernise Islamic finance through technology and paperless systems.
The Brummie touch goes further as Offa derives from King Offa, a monarch who lived between 757 and 796 AD in the Anglo-Saxon Kingdom of Mercia, today known as the Midlands.
The king did trade with Muslim rulers abroad and even produced a dinar (gold coin), with both his name and the Shahadah (declaration of Islamic faith) inscribed on it. Choudhury continues: “Islamic finance is based on values which are universal.
“People get scared by the word ‘sharia’ but the purpose of it embodies a lot of things everyone agrees upon. It enshrines the fact that we are custodians on this earth, that we operate with justice, fairness and transparency.
“A lot of people think it’s just ‘oh you don’t pay interest’ but that doesn’t get to the root of it. We avoid things that don’t fall in line with our faith like tobacco, gambling and alcohol, but we also want to promote something positive.
“We give our employees time off to work on charitable impacts of their choice and pay for that time. It’s not just about avoiding this and that, but we have to be more positive about what we are doing.
“We are practicing Muslims who want to create a better world but we are very inclusive. Our customer base is 44% non-Muslim and our staff is very diverse because we believe these are universal values. I don’t like to pigeon hole everybody and say ‘Muslim’ and ‘non-Muslim’. Even non-Muslims would agree with our values and ethics.”
A core value of Islamic finance is that money has no intrinsic value. Muslims cannot lend or receive money and expect to benefit from interest. Making money from money is forbidden.
Wealth is only to be generated through legitimate trade and investment in assets, according to Al Rayan Bank. Choudhury believes this is only the beginning of Islamic finance, claiming that gaps exists such as Islamic car finance or Islamic credit cards.
He said: “Islamic finance is good for Britain. The UK is the number one place where it can flourish and we are hopeful the new Labour government can continue that trend.
“I think Islamic finance is an antidote to some of the negativity we see of Islam in the West. It shows us creating wealth, jobs and opportunities in Britain.”
Aside from their standard products, Offa are launching a new buy-to-let finance (BTL) service which is available to new and seasoned landlords who are British residents or UK expats. Instead of using interest, the BTL product involves the Islamic finance principles of co-ownership-with-leasing.
Customers buy the property in partnership with Offa and make monthly payments to increase their share, over time owning it. The service is available to anyone purchasing property in England and Wales aged 21+ where the property’s value is between £60,000 and £1 million.
Sign up to the Brummie Muslims newsletter here
Is enough being done to stop rents or mortgages rising?