National Australia Bank (NAB) has announced an expansion of its Islamic financing offerings for businesses, following a 28 percent increase in demand over the past year.
The bank reported significant growth in its Islamic finance sector for businesses, with a marked rise in business customers seeking more customized financing solutions. In response, NAB has broadened its range of Islamic financing options to cater to a wider variety of business needs. These now include options for acquiring another business, purchasing equipment, and buying livestock, without requiring property to be used as collateral.
In particular, NAB has introduced a product offering a minimum of $5 million for commercial property development and construction. This funding is designed to support the purchase of commercial property and land, alongside the expanded business financing opportunities.
Dr. Imran Lum, NAB’s Head of Islamic Finance, noted the growing demand from business customers for financing options that align with their values. Since its launch in 2021, NAB’s Islamic finance products have experienced steady growth, reflecting the increasing interest in such tailored financial solutions.
“Muslim Australians are seeking business funding that aligns with their values and beliefs,” Dr. Lum stated. “This growth shows how well our offerings resonate with the community, especially among young, entrepreneurial Muslims in fast-growing areas. Our financing gives them the support they need to seize emerging business opportunities.”
NAB’s Islamic finance products are structured in accordance with both Australian and Islamic legal requirements. The financing operates as a lease-to-own model, where customers pay rent and service fees instead of traditional interest charges.
As the only major Australian bank to provide a Sharia-compliant financing solution, NAB’s offering is approved by the Amanie Advisors Shariah board. This positions the bank as a leader in providing Islamic finance to support Muslim-owned businesses.
According to NAB, New South Wales has seen the most significant growth in Islamic business financing, with a 54 percent increase from September 2023 to September 2024. Victoria followed closely with a 34 percent increase, and Queensland saw a rise of 8 percent.
“We are proud to be the only major bank in Australia offering specialized Islamic financing for businesses, and we’re excited to make this product available to even more customers,” Dr. Lum said. “Not all businesses have property to use as security, and our expanded financing options ensure they can still access the funds they need to grow.”
Dr. Lum also highlighted that while the product was originally designed for Muslim-owned businesses, it has also been utilized by non-Muslim businesses, particularly those with Muslim investors or partners who prefer Islamic financing solutions.
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