The content of the financial promotions on this website has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on these promotions for the purpose of engaging in investment activity may expose an individual to a significant risk of losing all of the property or assets invested.

March 11, 2024 | 2 min read

Embracing Ethical Property Development Investments During Ramadan

As Muslims around the world observe the holy month of Ramadan, a time marked by prayer, reflection, and fasting from dawn until sunset, it's an opportune moment to delve into how Islamic principles intertwine with ethical investing, particularly in the realm of property development. Ramadan commemorates the revelation of the Qur’an to Prophet Muhammad (PBUH), profoundly influencing Islamic finance and investments, including those offered by Acorn Property Invest through their Shariah-compliant portfolio.

By Jacob Baxter
An image depicting investing during Ramadan
Share on:

Understanding Shariah in Property Investment

Shariah, the Islamic law derived from the Qur'an and the teachings of Prophet Muhammad (PBUH), extends into the financial sector, emphasising not just monetary gain, but also social responsibility and environmental stewardship. Key principles include:

  • Ban on Interest (Riba): In Shariah, money is a value indicator, not an asset. Hence, earning or losing money through lending or borrowing is not permissible in Shariah-compliant transactions.
  • Ban on Uncertainty (Gharar): Transparency is crucial to ensure fairness in all dealings, making practices like short-selling or unclear contracts non-compliant.
  • Ban on Speculation and Gambling (Maysir): Gambling, a form of Gharar, is prohibited in Islam, advocating for responsible financial management.
  • Promotion of Ethical Investments: Investments should avoid industries forbidden in Islam (e.g., alcohol, gambling) and focus on those benefiting society and the environment.
  • Asset-Backed, Tangible Investments: Investments should be in physically tangible assets, avoiding companies with significant debt.

Additionally, the concept of Zakat in Islam - a 2.5% wealth tax for charity - is a cornerstone of Islamic wealth management, emphasising wealth distribution.

The Rise of Shariah-Compliant Property Development Investments

Recent studies indicate that a significant portion of Muslims prefer to invest in a halal, Shariah-compliant manner. This demand is increasingly being met through innovative solutions like Acorn Property Invest's Shariah portfolio, which offers fixed returns and aligns with the ethical principles of Shariah finance.

The Acorn Property Invest Advantage

Acorn Property Invest is at the forefront of this ethical investment wave, particularly in property development. Our Shariah portfolio is crafted to align with Islamic financial principles, offering:

  • Ethical and Sustainable Property Investments: We focus on developments that are environmentally responsible and socially beneficial, adhering to Shariah principles.
  • Long-Term Wealth Building: Encouraging investments over extended periods aligns with the Islamic tenet of avoiding Gharar and Maysir.
  • Community and Social Good: Our investments are designed to contribute positively to communities, reflecting the Islamic value of stewardship.
  • Shariah-Compliant Scoring: Our properties and investments undergo rigorous Shariah-compliance checks, ensuring they align with Islamic ethics.

Looking Ahead: A Future Rich in Shariah-Compliant Opportunities

The landscape of property investment is evolving rapidly, with a clear trend towards ethical and impact investing. This shift is increasingly accommodating the needs of Muslim investors, who form a significant part of the UK demographic.

With advancements in technology and education, we anticipate a greater variety of Shariah-compliant investment opportunities emerging. Acorn Property Invest is committed to being at the forefront of this evolution, continually offering tailored, ethical, and Shariah-compliant property development investments.

In conclusion, Ramadan serves as a timely reminder of the importance of ethical investing, particularly in the property sector. Acorn Property Invest's Shariah portfolio is a testament to our commitment to providing investment opportunities that are not only financially rewarding but also align with the ethical and religious values of our clients.

Exploring Shariah Investing with Faraz Adam

In a special podcast episode, a member of Acorn Property Invest's Investor Services team sits down with Faraz Adam, of Amanah Advisors, to discuss the essence of Shariah Investing. Faraz, whose guidance was crucial in certifying our Shariah Compliant Product, shares his profound insights on ethical investment practices that adhere to Islamic principles. This engaging conversation sheds light on how investments can be both financially rewarding and ethically sound, aligning with the values of Islamic finance. Ideal for anyone interested in the ethical dimensions of investing, this episode provides a deep dive into making value-driven investment choices.

Contact Us

Fill out the form below and we will contact you soon.