Muslims represent nearly a quarter of the world’s population and yet less than 1% of financial assets are shariah-compliant. There seems to be a disconnect that is likely to rise as young Muslim population and communities start to focus on savings for later life.
The emerging Islamic finance market is an opportunity for many fund managers, but they need to be aware of specific issues before they can enter this fast-growing market.
Islamic finance has been an intriguing topic for several centuries and the recent rise of halal investments under the pretext of shariah compliance is another attempt to appeal to a class of investors centred around religious beliefs. According to our research, most of the investment options available for ethical investors are conventional investments connected with income purification tool to clean any riba (prohibited) returns. The idea of purification of returns is polarising to most of the ethical investors and seen as a lesser of the evils when it comes to investment options.
We are working to establish a complete shariah-compliant asset-owned investment fund without any purification of income to address the concerns of ethical investors who clearly stay away from existing shariah-compliant investment options. Our investment model will support sustainable infrastructure development for short, medium and long-term gains giving ethical investors an option to select an investment option suitable to individual investment goals.