UK-based Islamic digital bank Nomo has unveiled a mortgage alternative designed for clients in the Middle East seeking to acquire properties in the UK, to capture GCC investment flows into the UK, a preferred real estate destination for Shariah investors.
Known as Nomo Property Finance, the Murabahah product will initially be available to customers in Kuwait and the UAE. The Kuwaiti-owned bank intends to launch for other GCC markets as well.
“As Middle East customers look to own a property in the UK, Nomo Bank is streamlining the house-buying process with fast, digital-focused applications and a quick decision process,” commented Sean Gilchrist, who added: “Middle East property buyers without a UK bank account have historically found it much more difficult to complete the property buying process due to several factors such as credit history.”
To avail the product, available for properties above GBP350,000 (US$422,475), individuals in Kuwait and the UAE must first open a UK bank account with Nomo, which can be done completely virtually via the Nomo app, without customers needing to be in the UK. They also do not need an existing credit score.
Since its launch in July 2021, Nomo has been working on growing its product suite which currently comprise current accounts, fixed-term deposits, remittance and property finance. Nomo is part of Bank of London and the Middle East (BLME), which in turn is owned by Kuwait’s Boubyan Bank.
BLME is one of four fully-fledged Islamic banks in the UK. Nomo was launched particularly to capitalize on the rising demand for international banking services from clients in the Middle East.
As at the 6th February 2023, there are six Islamic digital banks in the UK, more than any other jurisdictions in the world, according to the IFN Islamic Fintech Landscape.