HSBC have today confirmed that they will cease to offer Shariah compliant financial products to consumers in the UAE, UK, Bahrain, Singapore, Bangladesh and Mauritius.
HSBC are one of the largest banks in the world but offering niche products to small markets is always going to be difficult.
HSBC will continue to offer Islamic finance around the world but really start to focus on places like Saudi and Malaysia.
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Buying homes in UAE may just have gotten more easier.
Major banks in the emirates are competing to lure residents with rates as low as 4.99 per cent on mortgages and a high loan-to-value (LTV) ratio of up to 85 per cent.
The Sharjah headquartered United Arab Bank (UAB) recently offered the lowest finance rate in the UAE. The announcement came as demand for home financing has started to gain ground after more than two years.
UAB will start by offering an interest rate of 4.99 percent. Mortgages will be available to salaried and self employed UAE nationals as well as expatriates with conventional and Islamic financing options.
Since early this year several top banks have cut interest rates in a bid to outdo each other in the real estate mortgage loans.
Previously HSBC announced a revised mortgage lending rate of 5.49 per cent for UAE buyers looking to buy completed residential property. Similarly Standard Chartered has plans to bundle UAE mortgages with pre-approved personal loans of up to Dh250,000 and credit cards with no annual fees.
The Islamic lender Tamweel too came out with its aggressive offering rates of 4.99 per cent. Prior to that Abu Dhabi Finance, with its interest rate of 5.75 per cent, claimed to be offering the lowest rate among home finance lenders.
Story by: Newzglobe.com