Islamic finance is quite different to the Western-style as a Muslim cannot lend money to, or receive money from someone and expect to benefit. Interest (known as riba) is not allowed.
To make money from money is forbidden - wealth can only be generated through legitimate trade and investment in assets. Money must be used in a productive way.
Argosy managing director Martin Fuller says Islamic finance is a big business in other countries, but new to New Zealand.
He says that there are an estimated 20,000 Muslims living in New Zealand and until now no financial institution has offered an Islamic product for them.
“The potential market is too small for the banking sector but viable for a smaller mortgage bank like ourselves, Fuller says.
He describes the move as a natural extension of Argosy's business.
“Other than the $50 million in mortgage lending that we offer to English speaking New Zealanders every year, Argosy has recently begun taping into the Korean and Chinese market and see a natural synergy in providing a service to the Muslim community,” Fuller says.
