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FONDAZIONE HOUSING SOCIALE/CARIPLO, Milan 2006

Feasibility study and financing the acquisition of a dismantled factory to turn it into a cultural center to the benefit of the Muslim communities living in the medieval city of Pavia. First-ever Shariah-compliant transaction vetted and accepted by the tax authorities in Italy.

Release of "Accesso alla casa per gli immigrati - Il mutuo islamico" on how to finance Islamically the acquisition of real estate in Italy. This 24-page in-depth study starts with the definition of the prohibition of interest rates in Islam and provides an overview of Islamic finance in the world and of its institutional players.  It then turns to some Shariah-compliant home financing experiences in Western countries that are facilitated by public institutions, highlights different modes of Islamic home financing and gives a sample of international experiences. It continues with a detailed analysis of the Italian housing market and the role played in Italy by residents of foreign origins. It gives an appraisal of the potential market fast-expanding market where pent-up demand has a high statistical value The study then focuses on the main issues faced by the implementation of Islamic legal contracts (such as murābahah, agency murābahah, ijāra-wa-iqtinā’, declining balance partnership) used for Islamic home financing in the Western systems  and some issues for the implementation of Islamic home financing under the Italian civil code. It finally proposes of a domestic halal home finance product that complies with both Shariah requirements and Italian legal framework.maximization of the financial, fiscal and managerial viability close the study.

First-ever Shariah-compliant real estate transaction structured and executed in Italy. The acquisition, in the town of Pavia, of a dismissed factory, turned into a cultural centre, was financed through a contract of murabahah.

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Piero della Francesca, ‘La città ideale’, Italy XVI century