The implementation of the halal mortgage: costly or beneficial? A case study of the Netherlands

Abstract

This study provides a social cost-benefit analysis and case study about the potential market size of halal mortgages in the Netherlands. It analyses the effects of implementing the halal mortgage in the Netherlands under two scenarios: with and without adjusting fiscal law. The thesis provides an overview of all costs and benefits and focuses in the results on the costs and benefits for consumers. The used methodology is primarily conducting interviews with 33 participants, backed by secondary data provided from previous research. The results indicate that the potential market size has grown over the past years, indicating a market size between 110,000 and 145,000 potential halal mortgagors. If the law is adjusted, the benefits exceed the costs. In case the law is not adjusted, the quantified costs are higher than the benefits, but the qualitative benefits are most likely worth these costs, as indicated by the qualitative data.