Shariah-compliant investments are a form of ethical investing aligned with Islamic principles. These investments avoid interest (riba), excessive uncertainty (gharar), and prohibited businesses such as alcohol, gambling, and pork. For Muslims and ethical investors alike, Shariah-compliant options offer a faith-based and socially responsible way to grow wealth.
What Is Shariah Investing?
Shariah investing refers to financial activities that comply with Islamic law (Shariah). It excludes:
- Interest-based instruments (e.g., traditional savings accounts, bonds)
- Stocks from companies involved in alcohol, gambling, tobacco, or pork
- High-debt companies or those with unethical practices
Investors often rely on Shariah boards—groups of Islamic scholars—to screen and approve compliant investment products.
