4 Sharia-based investment platforms for ethical investing in the UK

By Gloria Methri

Shariah-compliant investments are based on Islamic law, or Sharia, which is a moral code of Islam. Such investments are crucial for Muslim investors as they align financial activities with Islamic ethical and moral principles, avoiding interest (riba), excessive uncertainty (gharar), and investments in prohibited industries such as alcohol, gambling, and pork.

In the UK, the Islamic finance market is growing significantly, reflecting a rising demand for halal financial products. According to the UK Islamic Finance Council, the country’s Islamic finance sector is valued at over $5 billion, with an increasing number of FinTech startups catering to this niche.

Islamic FinTechs and halal investment platforms are offering diverse ethical investment opportunities, providing options such as Sharia-compliant real estate, equity funds, and SME financing.

Here are four Shariah-compliant investment platforms offering ethical investing opportunities in the UK:

IslamicFinanceGuru is a platform that provides investment advice, financial education, and access to Sharia-compliant investment opportunities. It offers a curated list of halal investment funds, crowdfunding opportunities, and startup investments. Its target audience consists of Muslim investors seeking guidance and access to compliant investment opportunities.

Simply Ethical is a provider of Sharia-compliant and Socially Responsible investments and pension solutions for individuals. Established in 2009, it is directly authorised and regulated by the Financial Conduct Authority. Simply Ethical offers a range of Sharia-compliant investment solutions, including ISAs, pensions, and investment portfolios, to its private, corporate and intermediary clients. It provides personalized advice and manages investments according to ethical and Islamic principles.

Wahed Invest is a halal investment platform offering ethical and Sharia-compliant investment opportunities. It provides a diverse range of portfolios that avoid interest-based investments and companies involved in prohibited activities. Wahed Invest’s investments are designed to align with Islam’s ethics and social welfare beliefs and don’t involve alcohol, gambling, tobacco, or charging excess profit from interest.

Yielders is a property investment platform that provides Sharia-compliant investment opportunities in the UK real estate market. It allows investors to invest in pre-funded properties and earn rental income in a halal way. With its ethical investment model, there is no mortgage, interest, debt or hidden fees, which enables customers to grow their wealth without compromising on values.

Also read: Islamic Banking Systems and Suppliers Report Q4 2022