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What are the similarities between Ethical Investing and Islamic Finance Principles?
Explore Halal investing, aligning with Islamic principles and ethical guidelines. It discusses various Halal investment options, from shares to REITs and ETFs, promoting financial inclusion and social responsibility. Quranic references underscore the avoidance of harmful practices.
Kaan Doluner
Director
Let us delve into the criteria that determine whether investments are deemed Shariah-compliant and explore the diverse range of Halal funds available in the market.
Shariah-compliant investing revolves around adhering to Islamic principles, which prohibit involvement in activities such as gambling, alcohol, and interest-bearing transactions. These investments must also adhere to ethical guidelines outlined in the Quran and Sunnah, ensuring they contribute positively to society while avoiding harm. Also, several types of Shariah-compliant options cater to different investor preferences and risk appetites. From Halal shares to real estate investment trusts (REITs) and exchange-traded funds (ETFs) for instant diversification, there is a plethora of options available.
Quranic References: يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوٓا۟ إِنَّمَا ٱلْخَمْرُ وَٱلْمَيْسِرُ وَٱلْأَنصَابُ وَٱلْأَزْلَـٰمُ رِجْسٌۭ مِّنْ عَمَلِ ٱلشَّيْطَـٰنِ فَٱجْتَنِبُوهُ لَعَلَّكُمْ تُفْلِحُونَ ٩٠ O believers! Intoxicants, gambling, idols, and drawing lots for decisions1 are all evil of Satan’s handiwork. So shun them so you may be successful. (Quran 5:90) وَأَطِيعُوا۟ ٱللَّهَ وَأَطِيعُوا۟ ٱلرَّسُولَ وَٱحْذَرُوا۟ ۚ فَإِن تَوَلَّيْتُمْ فَٱعْلَمُوٓا۟ أَنَّمَا عَلَىٰ رَسُولِنَا ٱلْبَلَـٰغُ ٱلْمُبِينُ ٩٢ Obey Allah and obey the Messenger and beware! But if you turn away, then know that Our Messenger’s duty is only to deliver ˹the message˺ clearly. (Quran 5:91)
Investing in Halal funds not only aligns with Islamic principles but also promotes financial inclusion and social responsibility.
If you want to explore powerful Halal investment options that bring you towards your financial goals, then be sure to reach out to us to learn more over a free, no obligation chat.
