We’re living in unprecedented times. The global coronavirus pandemic may be causing a lot of anxiety and stress for people across Australia. As infections grow globally, people are quite rightly worried about the wellbeing and safety of their friends and family, as well as their future livelihood. In Australia, the situation is amplified as it just happened after a serious drought and bushfire emergencies. We cannot take for granted what we have now will continue into the future.


Within just over 100 days, the coronavirus raced around the world and there are now over 3.1 million people infected and nearly 216,930 lives have been lost with COVID-19. Here in Australia, whilst the number of infections is decreasing and the outbreak appears more contained than in some other countries, the economic outlook remains very uncertain. *Source – World Health Organization, Australian Government, AAP, Reuters, Johns Hopkins, other media as of 29 April 2020.

This uncertainty might make you unsure about investing in the current market, and with such devastation being caused around the world the idea of profit is likely not currently your main focus. However, hopes are rising that life will get back to normal soon.

The COVID-19 impact on the Australian economy

Australia has long been known as the ‘miracle economy thanks to it avoiding the global recession in 2008 as well as managing to remain relatively unscathed from the bubble burst as well as the 1997 Asian financial crisis. However, there is no escaping COVID-19 and it is affecting the Australian economy already as can be seen in the Australian Ordinary Share market.

As the coronavirus outbreak began to take hold in the country, the government announced a huge $320 billion care package designed to subsidise wages and support the business to reduce the impact that coronavirus will have on the country and the economy.


Investing during these uncertain times

The bright side of any difficulty is that people become creative and innovative to overcome the challenges they may face. We have learnt that sometimes, our lives can be sustained with less resource consumption, less on non-essential services, with a more climate and environment-friendly lifestyle, having global collaboration and overall with less stressful work practice. People will consider investing in more sustainable new ventures where the fundamental needs of people will be given a higher priority. One thing for certain is that the economy will bounce back. We will see a new normal rising on the other side of the bridge after COVID19.

How ICFAL can help…

Since 1998, Islamic Co-operative Finance Australia Ltd (ICFAL) has been providing Shariah-compliant finance for housing, vehicles and also community infrastructure. During these uncertain times, we are doubling our efforts and are here to support each and every one of our members with their financial needs. Our team is available from home or office as needed and equipped with safe and secure tools despite the lockdown. We have introduced extra data protection and use world-leading enterprise tools to protect privacy and financials.

We currently have over 3,500 members which have allowed us to build a Member Share Fund of over $40 million. Over the last two decades in operation, we have been able to expand our services to include a range of investment products such as:

  • Ordinary Investment Accounts
  • Children’s Education Funds
  • Self Managed Superannuation Fund
  • Hajj Funds


We take a special interest in securing the retirement funds of our members with a portfolio such as essential residential property market that gives sustained and long term income rather than speculative and high-risk investments and avoiding those of non-essential services. In a situation where either COVID or Bushfire or Drought causes economic hardship, investing in a sustainable product that ICFAL offers is the best choice for those who want a secured retirement fund.

ICFAL has a range of finance products that can support its investment portfolio during challenging times, now or in the future.

Property finance

a8-vi.jpg Our unique and flexible real market model looks at the property market in real-time and examines the value of the rental and growth prospects. Considered as one of the most desirable modes of Islamic finance, it is typically used when one party wants to own an asset in partnership with an Islamic Finance Institute like ICFAL.

This model creates a form of shared ownership, with leasing and ongoing share purchase arrangement differentiating it from an interest-based mortgage. With the housing market looking set to potentially become a more secure method of investment post-COVID-19, then there is potential for sustainable return on investment to be made.

ICFAL property finance model already generously covers its members’ hardship conditions extremely fairly even prior to the COVID-19 economic impacts that balance both social responsibility and investment security and returns for investors. This is done by various options that take into account the financial difficulty of its members and evaluate rent and property value gain as close to market as practicable. In contrast, a COVID-19 rescue plan for mortgage owners via short term interest rate reduction by RBA and deferment of payment by traditional banks will not fulfil the mortgagees’ final financial obligation as banks are going to capitalise on the deferred payments for a higher return post-COVID-19. Here is the big difference we make by putting sustained trust ahead of short term issues.

Car or Construction finance

Murabaha financing is a method designed to help our members purchase essential articles, such as cars and undertake small construction projects. ICFAL is promoting climate benefit travel options by financing environmental friendly electric vehicles (EV) along with traditional vehicles for personal or commercial use. The post-COVID-19 era is likely to increase in improvement or renovation of existing homes more than investing in luxury large properties on the path to recovery from the economic downturn.

As people will be getting used to working from home, workplace-based on residential property is likely to increase thus giving a further better outlook into the residential property market. ICFAL strategy to provide sustainable living for its members will mean it has a security of return on investment for its investing members.


Reach out today

No matter if you are thinking of investing in a property or are seeking support, get in touch with our friendly team today.





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