Looking to invest ethically in Austria while staying true to your values? Halal stocks could be the ideal solution. In this guide, we’ll explore the landscape of Sharia-compliant investments in Austria, ensuring your portfolio aligns with Islamic principles while offering the potential for strong financial returns.
Whether you’re an experienced investor or just starting your halal investment journey, this article will help you navigate the Austrian market for opportunities that are both ethically sound and financially rewarding.
Top 5 Halal Stocks in Austria by Market Cap
| Company Name | Ticker | Market Cap | Shariah-Compliance Status | Halal Ranking |
| Andritz AG | ANDR.VI | € 6.00B | Halal | ★ ☆ ☆ ☆ ☆ |
| Flughafen Wien AG | FLU.VI | € 4.17B | Halal | ★ ★ ★ ☆ ☆ |
| Josef Manner & Comp AG | MAN.VI | € 207.69M | Halal | ★ ★ ☆ ☆ ☆ |
| Be AG | BEAG.VI | € 171.39M | Halal | ★ ☆ ☆ ☆ ☆ |
| Kostad AG | KES.VI | € 97.54M | Halal | ★ ★ ★ ★ ★ |
Emergence of Islamic Banking in Austria
Islam has a long history in Austria, officially recognized in 1912 under the Religious Communities Act. As of 2022, about 8.3% of the Austrian population are Muslims, contributing significantly to the country’s culture and economy. However, Islamic banking is a relatively new concept in the country.
The first Islamic bank account in Austria was introduced by BAWAG P.S.K. in 2016. This account adheres to Sharia law, which prohibits charging interest and dealing with businesses involved in alcohol, gambling, and other activities deemed un-Islamic.
Despite its intention to serve the 600,000 Muslim population living in Austria, the introduction faced backlash on social media. Some customers accused the bank of giving preferential treatment to Islamic account holders. In response, BAWAG P.S.K. clarified that anyone could open a Sharia account if they believed it would benefit them financially.
The framework for Islamic finance in Austria became clearer after 2010, following a push for specific regulations by the Islamic Information and Documentation Center of Austria (IIDZ Österreich). This new set of rules aimed to make Islamic finance products more accessible and to provide certainty for both local and foreign investors.
However, the growth of Islamic finance has been slow. The only bank to offer Sharia-compliant products is BAWAG P.S.K., and there are no Islamic insurance companies operating in the country.
Austria’s status in the European Islamic finance landscape is categorized as Tier 3, meaning there is little development in this sector. This tier is characterized by the lack of supportive legislation, minimal clarity from financial regulators, and few Islamic financial institutions. To advance Islamic finance, proactive government support is needed, but so far, that has been limited.
Source: The Independent.
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