Autarky Capital Sukuk Plc, a type of asset-based security structured along Sharia finance values, aims to provide a choice for high-net-worth and sophisticated investors looking for an ethical way to generate returns.
According to the founders, the proceeds from investments in the Sukuk will enable Autarky to supply funding to provide capital for the purchase, refurbishment or development of residential or commercial properties in the UK.
Autarky intends to partner with external organisations and, through the donation of a portion of fees generated under the programme, support charities on a project-by-project basis.
It is the perfect time to make Sukuks a mainstream option for ethical investors in the UK.Shoaib Bux
This will ensure all money donated is being used to support what the founders have called “real change on the ground”.
The UK became the first Western country to issue a sovereign Sukuk in 2014 and Islamic banking assets have since burgeoned.
According to the London Stock Exchange Group, Islamic banking assets totalled $2.8trn (£2.3trn) in in 2021, and are projected to hit $4trn by 2026.
Shoaib Bux, co-founder with Yasin Patel at Autarky Sukuk, said: “We believe the Autarky Capital Sukuk programme will contribute to the increase in desire for ethical investment opportunities.
“It is the perfect time to make Sukuks a mainstream option for ethical investors in the UK.”
Advised clients
Bux also told FTAdviser: “The introduction of Islamic finance options on the market has given advisers and their customers food for thought.
“While the natural disposition of many may be to dismiss Islamic finance options, as they are not of the Islamic faith, the alignment of ethical values with shari’ah principles is changing those perceptions.”
According to Bux, for clients looking at ethical investment opportunities, the introduction of Autarky’s Sukuk on to the market bolsters the options they have available.
He explained: “Autarky’s Sukuk are bound by Sharia law, and as such, are unable to partner or invest money into projects that are not morally and ethically sound.
“By the Sharia principles, no money invested in the Sukuk will be reinvested into harmful industries such as pornography, alcohol, gambling or arms and any default payments or penalties are directly donated to charity.
“This is in addition to the regular donation to charities based on a percentage taken from shared profit. An advocate for social responsibility and sustainability, the Sukuk promotes the UN’s Sustainable Development Goals by following these Islamic principles of transparency and fairness.”
Each funding transaction is priced individually, with the client’s experience, credit risk and liquidity dynamics of the property fully considered.
How it works:
