Muslims all over the world have been looking to invest in a sharia compliant way for some time. For any of you that don’t know the reasons and why this is being searched for, let’s start with some background. According to Shariah law, investing needs to be socially responsible. This sounds like a lot, but what it basically means is that it’s not allowed to invest in items prohibited by Islamic law (alcohol, gambling, pork ,etc). Apart from that, it’s not allowed to gain profits through interest.
Nowadays, companies play into this and offer Halal investment opportunities. We have regular, established, companies like banks, Pricewaterhouse Coopers and other players offering a specialized portfolio just to serve the people in need, but also some new players on the market. The latter category specializes this specific need and offers a platform which is specific, but not limited to, the market. Take for example Wahed Invest, a fairly new platform which started with an offering in the US and UK and recently expanded to the global market. This company is the first in the world to offer a global Sharia compliant product for general use, with a minimum entree fee of as low as a 100 USD. Some other players on the market are Sarwa, Emirates Islamic and as mentioned before, some other companies offer specialized portfolios to target this specific market.
Ethical investment would be another (and perhaps much better) way to describe Islamic investment. After all, the companies provide a way to gain amazing returns, while not gaining money on interest or (arguably) immoral business.