And for those that would accept commercial loans, they still struggle to find a bank willing to lend to tourism businesses. Some Muslims in the tourism industry will accept commercial loans, but many will not. Approximately 92 percent of Jordanians are Muslim Islamic tenets prohibit them from dealing with interest (“ riba” in Arabic). Additionally, many business owners face the challenge of finding loans that comply with their religious beliefs. The ability to repay a loan is affected by the country’s political and economic situations, which fluctuate. Historically, many tourism businesses in Jordan have not had access to financial loans because banks consider the sector to be a risky investment. Owners of small- and medium-sized tourism enterprises are trying to expand and flourish under these circumstances, but they are facing a major obstacle: They cannot obtain bank loans. Increasing economic growth and job creation through tourism is critical to the country’s future. A weakening sector thus poses a significant threat to Jordan’s economy. Tourism is one of the country’s most important socioeconomic sectors, contributing close to 11 percent of the gross domestic product. The minister of tourism and antiquities noted in 2015 that the country stood to lose $750 million in tourism revenue in one year as compared to 2014.įinancial constraints are at play here. Fewer visitors are entering the country, several hotels in Petra have closed, and fewer tour operators and car rental companies are in business. However, despite efforts to strengthen perceptions of its tourism, Jordan’s competitiveness in the industry has suffered since 2012, in large part due to regional turmoil and political instability. Visitors explore the pre-historic city of Petra, float in the Dead Sea, and hike in the Wadi Rum desert. How to Apply: Please contact the Islamic Branch for more information.Ĭopyright © 2021 HBZ Bank Limited, all rights reserved.Every year, millions of travelers from across the world are drawn to Jordan’s beautiful attractions. For local purchase and import of raw materials and finished goods.All documents have been reviewed and certified by the Darul Iftaa Mahmudiyyah as being in compliance with Shari'ah Laws and meet the requirements of Islamic Finance.Ĭertificate of Shariah Compliancy Features: Our Islamic Banking division is under the guidance of our Shari'ah Advisor, Mufti Ebrahim Desai. The Bank buys the commodity from a third party and sells it to the customer at an agreed price. The cost and profit margin is expressly disclosed to the customer. SIRAT Murabaha is a financing arrangement of sales transactions whereby the Bank purchases a commodity on behalf of the customer and sells it to the customer on cost-plus-agreed profit basis. SIRAT Murabaha Financing Trade Finance - Shariah Compliant Way

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