UK’s Offa acquires Bank of Ireland’s Islamic home finance portfolio

Birmingham-based Islamic fintech Offa has acquired Bank of Ireland’s Shariah-compliant home finance portfolio.

The deal includes more than 350 home purchases plans. Customers transferred over to Offa will be able to access to a broader range of Sharia-compliant property finance products.

Offa, which offers an ethical finance model designed in accordance with Islamic finance principles, did not reveal the value of the deal. 

Bank of Ireland's Alburaq portfolio is one of the oldest Shariah-compliant home finance products in the UK. 

Amir Firdaus, Offa’s CFO said that it was a testament to Offa’s abilities that Bank of Ireland has agreed to sell their Islamic home finance portfolio to us. 

Offa launched a buy-to-let (BTL) service in July to overhaul traditional property financial solutions. The product, built on Islamic finance principles of co-ownership-with-leasing, enables customers to acquire properties in partnership with Offa, make monthly payments to increase their share, and own the asset over time. The company holds £230 million of Shariah-compliant funding for its BTL product. 

Muslims form 6.5% of the overall population of England and Wales, according to the 2021 census data. Birmingham, where Offa is headquartered, hosts the largest Muslim population in the country, totalling 341,811.