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.

October 27, 2023

Exploring Shariah Compliant Property Investments: A Conversation with Mufti Faraz from Amanah Advisors

By Will Carter
A Conversation with Mufti Faraz from Amanah Advisors
Share on:


In this engaging conversation between Acorn Property Invest and Mufti Faraz from Amanah Advisors, we delve into Acorn's Shariah-compliant investments. Mufti Faraz, an expert in Shariah-compliant finance, sheds light on the principles and practices that underpin these investments, revealing how they align with ethical and sustainable values.

Understanding the Problem:

The conversation begins with a critical issue - the conventional financial system, which primarily relies on interest-based financing and bonds. Mufti Faraz highlights how lending with interest goes against Shariah principles shared across Abrahamic faiths and classical philosophers. In essence, interest-based lending is viewed as exploitation, while lending, from a Shariahh perspective, is a charitable act meant to support those in need. The conversation emphasises that exploiting someone's financial need by charging interest is unfair, as borrowers bear all the risks while lenders are guaranteed the principal and interest.

The Solution: Murabaha Structure:

To address this issue, Shariah-compliant financing, particularly the Murabaha structure, is introduced. The Murabaha structure involves purchasing an asset or property, sharing ownership, and then selling the asset with a markup. This approach connects financing to tangible assets, ensuring that every financial transaction is tied to an asset. This connection helps control inflation and prevent the rise of money supply without a corresponding increase in assets.

The Introduction of Wakala:

Mufti Faraz further explains the concept of Wakala, which means "agency." In this structure, investors appoint Acorn as their investment agent to manage their funds in a Shariah-compliant manner. However, it's important to note that Wakala remains linked to the Murabaha product, which is the core of Shariah-compliant financing. The Wakala structure offers a more passive, hands-off approach for investors who prefer to delegate investment decisions.

The Importance of Sustainable and Green Practices:

The conversation then delves into the significance of sustainable and green building practices. It is emphasised that these practices align with Shariah principles. The concept of balance, or "Mizan," is introduced from the Quran, highlighting the importance of maintaining balance in the world. Sustainable practices are seen as a way to uphold this balance. Several Islamic teachings, such as conserving water, avoiding extravagance, and sharing food, emphasise sustainability.

Challenges and Future Trends:

Mufti Faraz identifies challenges in Shariah investing, including the need for better capital raising, addressing issues of product diversification, and improving financial literacy. Education is crucial, not only for Muslims but for everyone interested in ethical and sustainable investing. The conversation also touches on how money should be put to productive use, and idle wealth can be subject to wealth tax, encouraging individuals to invest their resources effectively.


This conversation with Mufti Faraz from Amanah Advisors provides valuable insights into the world of Shariah-compliant property investments. It highlights the ethical and sustainable aspects of these investments and encourages the education of all individuals, regardless of their faith, in the principles of ethical and responsible investing.

How to get started with Acorn Property Invest

If you are a certified investor seeking a potentially profitable Shariah investment opportunity, we invite you to consider adding the Acorn Shariah investment to your portfolio. Register for a look at the full Shariah investment summary.


Investment opportunities available via Acorn Property Invest are exclusively targeted at exempt investors who are experienced, knowledgeable and sophisticated enough to sufficiently understand the risks involved, and who are able to make their own decisions about the suitability of those investment opportunities. All investors should seek independent professional investment and tax advice before deciding to invest. Any historic performance of investment opportunities is NOT a guide or guarantee of future performance and any projections of future performance are not guaranteed. All investment opportunities available via Acorn Property Invest are NOT regulated by the Financial Conduct Authority (FCA) and you will NOT have access to the Financial Services Compensation Scheme (FSCS) and may not have access to the Financial Ombudsman Service (FOS).