In the tech space, activities prohibited by Sharia include the production/distribution of music, the production/distribution/screening of films and television shows, manufacturers of defense and weapons, and owning/operating casinos and gaming facilities. Even with these off-limit activities, “Our investment universe consists of approximately 1,000 technology-related listed securities across the market capitalization spectrum,” Curtis said. “We expect the largest fund exposure to be within a large portion of the market followed by the mid-cap segment. By investing across the spectrum, we aim to give investors access to a diverse range of companies across technology and related sectors with compelling long -term growth prospects. “
The integration of Sharia and technology investment space is relatively untested waters. Dubai -based fund manager Shuaa Capital has a portfolio of Sharia -compliant funds and also has broad interests in the tech space, particularly its interest in music streaming portal Anghami, which has completed a listing on Nasdaq New York.
Franklin Templeton has over $ 3 billion in assets in its Shariah lines, which are managed from its office at the Dubai International Financial Center. In addition, the company offers dedicated Shariah investing expertise in Singapore and Malaysia.
We have partnered with our Shariah Supervisory Board to create a set of standards that will help identify businesses that comply with Shariah principles to determine eligible investments.
– Sandeep Singh, Regional Head and Head – Islamic Business, Franklin Templeton.
“The screening standard focuses on prohibited business activities and appropriate financial ratio tests,” Singh said.