Your Basket
Your Basket
There are no funds in your basket. To add funds to your basket use the Green Plus Icon wherever you see it next to a fund.
Fund name
Aberdeen American Growth  
Fidelity American  
Schroder UK Mid 250  
M&G Recovery  
Jupiter Merlin UK Growth  
Close Basket Open basket

Login

Login

Register

It's look like you're leaving us

What would you like us to do with the funds you've selected

Show me all my options Forget them Save them
Customise this table
 
 
Poll

Have you been allocating more to cash or equities, given signs of rising risks?

Cash
Equities

Vote

 

Shariah Law Guide

 

Shariah Compliant Investment Vehicles

In light of the restrictions posed by Shariah law, specific investment vehicles are required in order for Muslims to invest.

Introduction

As of 2007 the Muslim population in the world stood at about 1.6bn, countries with the highest Muslim populations are Indonesia, Pakistan, Bangladesh, India and Turkey. However, countries with the highest Muslim concentrations are mostly located in the GCC where the percentage of Muslims population ranges from 90-100%. This high concentration of Muslims renders the GCC the most sensible market entry location for Shariah compliant investment vehicles.
With so much money being generated from the sales of crude oil, coupled to rapid increase in oil prices over the last year, has resulted in the accumulation of a vast amount of unmanaged wealth in the Middle East. The Western world has captured a relatively low share of this vast reserve of wealth, due to the relatively low number of Shariah compliant investment vehicles in the west compared to South East Asia or the Middle East where Islamic finance is much more developed.
Investors that are interested in investing in Shariah compliant funds should be informed about the general types of funds, how a Shariah compliant fund operates and the additional implications that Shariah brings to risk and returns on investments.
Previous Section «
Next Section »

Back to top of pagetop

 
  • Stay connected with FE trustnet
  • Authorised and Regulated by the
    Financial Conduct Authority
  • © Trustnet Limited . All Rights Reserved.
  • Please read our Terms of Use / Disclaimer
    and Privacy and Cookie Policy.
  • Data supplied in conjunction with Thomson Financial Limited,
    London Stock Exchange Plc, StructuredRetailProducts.com
    and ManorPark.com