A common sight around Jeddah are buildings that have upper floors added to them after a period of time. This happens frequently when the owner has enough money to build maybe one or two floors to start with, and then a few years later accummulates more money to pay for additional floors added on top of the existing building. Many times the new floors will accommodate the owner’s children and their families, or the space will be rented out to supply additional income for the owner. The idea of charging or paying interest on a bank loan is forbidden in Islam. But there are ways around it. Up front service charges can be applied, or the bank can make the purchase, which is then sold at a profit to the customer who can make payments. Interest earned on a savings account is also considered “haram” (forbidden) in Islam because money made without any action, like buying, selling, making a profit, etc., is wrong. Usury is considered to be exploitation of the poor by Islam and is to be avoided at all costs. Consequently many people here operate on a cash only basis, avoiding the pitfalls which are against Islam that savings and loans tend to represent.
About This Blog, and About Me: Susie of Arabia
Jeddah, Saudi Arabia, is KSA's 2nd largest city and is located on its west coast, right on the Red Sea. I moved here in 2007 with my Saudi hubby and teenage son. This journal reflects the things that I see here, life through my eyes, my lens.
Please be sure to also visit my other blog, SUSIE'S BIG ADVENTURE, which relates my experiences, thoughts, and observations about living in Saudi Arabia.
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