Sharia compliant investment opportunity

For muslim/islamic investors we will be using a sharing gross profit model and this will be offered as either shares or first charge security. 

Principles of Islamic Finance

1. Interest free

Islamic finance prohibits the payment or receipt of interest (riba). Instead it operates on profit sharing, lease and partnership models to generate returns.

2. Asset backed financing

Transactions in Islamic finance must be backed by tangible assets or services. This ensures that investments are grounded in real economic activity which reduces speculative behaviour.

3. Risk sharing

Islamic finance emphasises risk sharing between lender and borrower. This principle ensures that both parties share in the profits and losses of a venture, promoting fairness and collaboration.

4. Ethical investments

Investments in Islamic finance must comply with Sharia (Islamic law), which prohibits investments in industries such as alcohol and pork, aligning financial activities with ethical and moral values.

5. Social responsibility

Islamic finance includes the concept of zakat, a form of almsgiving or charity, which requires Muslims to contribute a portion of their wealth to those in need. This promotes social welfare and economic justice.

6. Murabaha

A common Islamic financing structure is Murabaha, a cost plus profit sharing arrangement where the bank buys an asset and sells it to the client at a marked up price, with payment typically made in instalments.

7. Sukuk

Islamic bonds, known as Sukuk, represent ownership in a tangible asset or a pool of assets rather than a debt obligation. This structure ensures that investors have a direct stake in the asset’s performance.

8. Takaful

Islamic insurance, called Takaful, is based on mutual cooperation and shared responsibility. Participants contribute to a pooled fund that is used to support any member who incurs a loss, promoting collective welfare.

9. Sharia boards

Islamic financial institutions have Sharia boards composed of scholars in Islamic law, who oversee and ensure that all products and services comply with Sharia principles, maintaining the integrity of Islamic finance.

10. Global growth

Islamic finance is not confined to Muslim-majority countries. It is expanding globally with significant growth in regions like Europe, North America and Southeast Asia, driven by increasing demand for ethical and sustainable financial products.