Sharia-compliant bridge finance firm Offa has announced a £100m credit line from a fund managed by UAE-based Gulf Islamic Investments Group (GII).

The credit line is the largest of its kind outside of the Gulf, creating significant capacity for Offa to expand its bridging propositions in the UK property market.

Offa said it will use the funding to launch new bridge finance products for heavy refurbishments and development, in addition to existing traditional bridge-financing products. The business is primarily aimed at property investors from the UK’s Muslim community of four million people, who represent 6.5% of the UK population and seek finance that is compatible with their faith.

Founding partner and managing director of Offa’s bridging division, Bilal Ahmed, said: “GII’s new funding line is fantastic news for Offa and the UK. It’s the single largest credit line to a British Islamic Finance House, underscoring GII’s confidence in the UK bridging market.

“Demand for Offa’s products is strong. We’ve seen a tenfold increase in business these past 12 months. With bigger capacity, we can expand our asset book and product set to support many more brokers and clients with their finance requirements.”

GII, which took a majority stake in Offa in 2022, has over £3.6bn of assets under its management and its investors are attracted to the prospect of double-digit annual returns from funds in the UK bridging market sector, which is currently worth £7bn, as part of the expansion of GII’s private credit and fixed income platforms.

“Our investors rely on GII to offer class-leading global investment options and bespoke opportunities to build wealth with a noble purpose,” added GII co-founder and co-CEO, Mohammed Alhassan.

“The UK has long been a focus for GII’s asset management plans, providing strong profit margins in a well-regulated and growing market. Offa represents an attractive home for GII’s managed assets, in a partnership strengthened by our shared experience of Sharia-compliant ethical business.”

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