Ma`rifat Eqtesadi

In recent years the different methods for financing the housing sector in Islamic banking are identified. This paper investigates the common Techniques of Islamic housing finance in Iran and prioritizing them. The hypothesis of the paper is that from among the six methods of Islamic housing finance including Morabehe, Renting with option to buy, Tavaruq, Buy on credit, Estesna'e Muvazi and Reduced Participation, the last one is more compatible with Islamic banking doctrines. The investigation of this claim is centered on experts' view, use of the methods of multi-standard decision-making methods and prioritization of finance methods based on chosen standards; legal-lawful, financial, jurisprudential and public. The research findings show that Islamic banks have, for many years, designed and performed different finance methods, which are almost similar to the traditional and common techniques. Among the lack of investment and finance by means of profit and loss sharing in Islamic financial system, Islamic banking restored to using rather new financial means, under the name of reduceed Participation which is rarely used. The experts' views about housing finance show that the technique of Reduced participation is highly compatible with the aims and standards of Islamic finance.