Mohammed needs money in order to renovate his house. The cost of renovation is BHD 90,000. His wife, Najma, has savings up to BHD 30000 and needs additional financing of BHD 60000. Mohammed knows that he can always borrow from any bank in Bahrain, but he wants a Sharia compliant financing.

Mohammed seeks your advice on a few issues before he can make his decision on which financing best suit his needs i.e.

a) Why is conventional borrowing not sharia compliant for Mohammed?

b) What are Shariah compliant alternatives for him.

Advise Mohammed accordingly.