Halal investment in Australia is one of the developing points. Despite the fact that Muslims make up barely 3% of Australia’s population, their numbers are expanding. Muslims are reshaping cultural touchstones to satisfy their ethical and cultural requirements. Though this applies to many aspects of life, traditional financial services are one of the hardest to incorporate.
If you want to invest your money in a way that is both ethical and compliant with Islamic principles, you may have a hard time discovering investing solutions that are totally in accordance with your investment goals and principles if you go through traditional financial firms.
The unfortunate reality is that up to 40% of your money could be invested in companies that are against Shariah laws. Interest-earning financial services, alcohol, cigarettes, gambling, weapons manufacturing, adult entertainment, and the pork business are just a few examples.
What Does Halal Investment Means?
So, what exactly does halal investment forbid? Riba and gharar are two of the most important concepts in halal investing. Riba is the practice of charging interest. This means that Islamic investors will avoid interest-bearing areas like mortgages. Gharar, the type of uncertainty that insurance companies profit from, is not permissible in shariah-compliant investments.
Both of these possible issues must be eliminated for Islamic finance. As previously stated, traditional investments can be made in a variety of haram marketplaces. Funds can conform with Islamic teachings by choosing funds that do not cross these boundaries.
How Do Halal Investments Perform?
When you consider withdrawing assets from your current account and investing in a halal fund instead, you may become frustrated. Isn’t this limiting the investment options?
Both yes and no. Yes, when investing in Shariah-compliant securities, there are fewer marketplaces to choose from. No, because in times of difficulty, the remaining markets tend to be more stable and rewarding. You waste very little time by avoiding potentially risky investments.
The most recent example of Islamic investing success was in reaction to the COVID-19 pandemic. During the 2008 financial crisis, the Dow Jones Islamic Market outperformed the Dow Jones by a whopping 15%. There is precedent to have faith in Islamic Finance Opportunities.
The Best Halal Investment in Australia
Halal cash investment may appear to be too similar to traditional banking. When you invest in Islamic banking, however, this is not the case. Islamic banking ensures that all terms and conditions of real Islamic applies. In contrast to traditional banking, Islamic banking is a practice of banks and financial institutions that follow the Islamic Shariah. However, you must be familiar with HALAL banking techniques in order to avoid misunderstanding or having doubts about the process and return on your investment.
Halal Investment in Property and Infrastructure
Property investment is, without a doubt, the most reliable of all. Records demonstrate that it has grown in popularity as the finest investment industry throughout time. When it comes to Halal investment options in Australia, the property and infrastructure markets can be extremely beneficial. Although the property market has had some market swings in the past, it has now steadied and increased by 11% in 2017. Not only does this investment option adhere to Islamic teachings, but the property and infrastructure industry also provides a plethora of financial benefits to investors. As a result, you’re in a win-win situation.
HALAL Investment in Technology
In Australia, technology advances at a rapid pace. Because of the rapid pace of change in artificial intelligence, renewable energy, and the “internet of things,” are safe. You can choose from a variety of possibilities, ranging from raw materials to finished items. In Australia, the technology industry is incredibly diverse, so you’ll have many possibilities to choose from. According to the Australian Trade and Investment Commission (ATIC), the contribution of digital technologies to Australia’s economy is going to increase by 75% to A$139 billion between 2014 and 2020.
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