Image source: https://www.mifc.com/-/what-is-islamic-halal-investment-and-why-is-it-on-the-rise-

Shariah Compliant investment refers to investment practices that adhere to Shariah principles, ensuring transactions are ethically and religiously permissible. These principles prohibit involvement in interest-based transactions (riba), investments in prohibited assets (haram), and highly uncertain transactions (gharar). Halal investment operates on models of profit-sharing, shariah-compliant insurance, and sukuk, Islamic financial certificates representing ownership shares. Unlike conventional bonds, sukuk investors receive profit payments rather than interest, ensuring Shariah compliance.

The rise in halal investment can be attributed to several factors. Firstly, there’s a growing global demand for Shariah-compliant financial products, driven by an increasing Muslim population and a desire for ethical investments. Millennials, in particular, are more socially aware and seek investments aligned with their values. Additionally, events such as Israel’s war on Gaza have prompted consumers to boycott brands perceived as supporting unethical practices, further fueling demand for Shariah Compliant investments aligned with ethical values.

Technology, particularly fintech, has played a significant role in the rise of Shariah compliant investing by making it more accessible and convenient. Fintech platforms provide easy access to halal investment options, leveraging social media to increase awareness among Muslims. The growth of fintech has outpaced traditional banking, offering efficient and transparent solutions tailored to retail customers, especially the younger generation.

Overall, the combination of increasing demand for ethical investments, heightened social awareness, and advancements in fintech has contributed to the rising popularity of Shariah compliant investment. As technology continues to evolve and awareness spreads, the trend is expected to persist, offering more opportunities for Shariah-compliant investing globally.

Read more here:

https://www.mifc.com/-/what-is-islamic-halal-investment-and-why-is-it-on-the-rise-