Shariah-Compliant Investments: Explained

Jul 29 2021 | 1 min

What are Shariah-compliant investments?

Shariah-compliant investments are governed by the tenets of Shariah and the founding principles of Islam to ensure that investment earnings are Shariah-compliant. Shariah compliance is essentially a category of socially responsible investing. First developed in the 1960s as a concept, the popularity of Islamic funds continues to rise. According to a 2011 report by PricewaterhouseCoopers (PwC), they grew at an annualized rate of 26% from 2001 to 2010.[1]

Shariah-compliant investments should not derive their income from activities that are prohibited by Islam as Haram, such as alcohol, pork-related products, pornography, gambling, usury, weapons and defense, etc.

Examples of Shariah-Compliant Investments

The Family Office offers Shariah-compliant investment opportunities in multiple asset classes including private equity, real estate, private credit, technology, healthcare, aviation, etc. Every investment is vetted by qualified Shariah scholars.

The range of services and investment products provided by The Family Office can be customized for clients who prefer Shariah-compliant investment solutions in line with their risk appetite and financial goals.

Your Shariah-Compliant Portfolio with The Family Office

Deeply rooted in the Gulf Cooperation Council region, we know, understand and respect the culture and values of our clients. Our Shariah-compliant investment solutions include liquid, yielding, balanced, or growth portfolios.

The Family Office enjoys a long track record as the trusted wealth manager of more than 200 ultra-high-net-worth individuals and families in the region. With more than US$2 billion in assets under management, we are committed to preserving and growing wealth and legacies.

Our financial advisors are available to help you devise the best investment solution to meet your exact financial needs and requirements. Schedule an appointment today.

 

[1] https://wealthface.com/blog/shariah-compliance/

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