How are Shariah-compliant investments different from conventional investments?

The difference is that Shariah-compliance is based on the teachings of the Quran and precedents derived from the life of Prophet Muhammad Muhammad (peace be upon him). Shariah-compliant investment directs investments toward responsible activity that benefits society. Conventional finance may not have the same ethical, environmental or social considerations as its primary objective is typically profit maximisation. ESG, impact investment and responsible finance bear some similarities in its objectives to Shariah-compliant investments.

Last Update: 04 October 2024