The IBFD will give priority to conduct research in this area. Alternative to Mortgages For Housing Finance Mortgage finance is a large part of overall consumer finance. So far, the Islamic substitute to the conventional facilities is not quite clear. The IBFD will conduct studies on different aspects of this subject with a view to explore the Islamic alternative for housing finance. The existence of a dynamic entrepreneurial class is vital for technological progress and economic development.
Entrepreneurial functions involve risk-taking.
Therefore, the class is shy in the developing countries. Islamic financial institutions can be instrumental in the promotion of this vital entrepreneurial group by sharing with them the initial risk of the projects through the use of profit sharing modes. However, Islamic financial institutions confront a number of practical difficulties in adopting profit sharing modes. There is a need to look into these difficulties as well as into the need to establish specialized equity institutions. The IBFD plans to study the subject so that profit sharing can take its due place in the practice of Islamic financial system.