Curious about how to invest ethically in Spain while ensuring your portfolio is in line with your ethics and financially rewarding? Halal stocks offer an appealing opportunity for Muslim investors seeking to adhere to Islamic principles while aiming for strong financial returns.
In this guide, we’ll delve into the landscape of Sharia-compliant investments in Spain, exploring how you can make investments that are both in line with your ethics and financially rewarding.
Whether you’re an experienced investor or new to the concept of halal investing, this article will help you discover opportunities in the Spanish market that fit your values and financial goals.
List of 20 Halal Stocks in Spain by Market Cap
| Company Name | Ticker | Market Cap | Shariah-Compliance Status | Halal Ranking |
|---|---|---|---|---|
| Industria de Diseno Textil SA | ITX.MC | € 127.45B | Halal | ★ ★ ★ ★ ☆ |
| Amadeus IT Group SA | AMS.MC | € 26.32B | Halal | ★ ★ ★ ★ ☆ |
| Laboratorios Farmaceuticos ROVI SA | ROVI.MC | € 4.02B | Halal | ★ ★ ★ ★ ★ |
| General de Galerias Comerciales SOCIMI SA | YGGC.MC | € 3.66B | Halal | ★ ☆ ☆ ☆ ☆ |
| Vidrala SA | VID.MC | € 2.99B | Halal | ★ ★ ☆ ☆ ☆ |
| Viscofan SA | VIS.MC | € 2.62B | Halal | ★ ★ ★ ★ ☆ |
| Ebro Foods SA | EBRO.MC | € 2.24B | Halal | ★ ☆ ☆ ☆ ☆ |
| Almirall SA | ALM.MC | € 1.69B | Halal | ★ ☆ ☆ ☆ ☆ |
| Faes Farma SA | FAE.MC | € 924.76M | Halal | ★ ★ ★ ★ ☆ |
| Proeduca Altus SA | PRO.MC | € 822.07M | Halal | ★ ★ ★ ★ ☆ |
| Zambal Spain Socimi SA | YZBL.MC | € 708.70M | Halal | ★ ★ ★ ☆ ☆ |
| Pharma Mar SA | PHM.MC | € 545.54M | Halal | ★ ☆ ☆ ☆ ☆ |
| Clinica Baviera SA | CBAV.MC | € 453.24M | Halal | ★ ★ ★ ★ ★ |
| Energia Innovacion y Desarrollo Fotovoltaico SA | EIDF.MC | € 361.22M | Halal | ★ ★ ★ ★ ☆ |
| Laboratorio Reig Jofre SA | RJF.MC | € 200.88M | Halal | ★ ☆ ☆ ☆ ☆ |
| Airtificial Intelligence Structures SA | AI.MC | € 182.70M | Halal | ★ ★ ★ ★ ★ |
| Prim SA | PRM.MC | € 172.03M | Halal | ★ ★ ★ ☆ ☆ |
| Grupo Greening 2022 SA | GGR.MC | € 158.46M | Halal | ★ ★ ★ ☆ ☆ |
| Inversiones Doalca SOCIMI SA | YDOA.MC | € 157.83M | Halal | ★ ★ ★ ☆ ☆ |
| Aplicaciones y tratamiento de sistemas SA | ATSI.MC | € 154.00M | Halal | ★ ★ ★ ★ ★ |
Growth of Islamic Finance in Spain
Islamic finance offers a new way of raising funds for families, companies, and public institutions in Spain. It presents an alternative to traditional financial systems, especially for entrepreneurs and SMEs who face challenges in obtaining credit.
Islamic Finance Principles
Islamic finance is governed by strict principles from Sharia law, making it distinct from Western banking systems. These principles include prohibiting interest, speculative activities, and transactions related to unethical industries like alcohol or gambling.
Key Islamic Financial Products
The main Islamic finance products include Sukuk (Islamic bonds), Murabaha (credit for asset purchases), and Ijara (leasing contracts). These products adhere to Sharia principles and involve risk-sharing, with no fixed return on investments, unlike Western banking products.
Potential of Islamic Finance in Spain
The growing Islamic economies, combined with the limited reputation of traditional Spanish banks, present an opportunity for Islamic finance to gain traction in Spain. Countries like the UK, France, and Luxembourg have already introduced fiscal reforms to accommodate Islamic finance, and Spain has a chance to follow suit.
Need for Reforms and Future Prospects
For Islamic finance to flourish in Spain, reforms in fiscal and legal systems are necessary to eliminate barriers such as double taxation. Spain, with its Arab cultural influences and significant Muslim population, is well-positioned to become a hub for Islamic finance, particularly for Latin America and Mediterranean countries.
Source: https://oa.upm.es/
Intention to Use Islamic Banking in Spain
Attitude, religious motivation, awareness, and service pricing play key roles in determining the likelihood of Muslims in Spain using Islamic banking. A survey conducted among Muslims in Barcelona revealed these factors as important in shaping their financial decisions.
Profile of Potential Islamic Banking Customers
The typical customer for Islamic banking in Spain is often a Muslim male of Spanish, Moroccan, or Pakistani origin, who has not completed a university education. Religious motivation and awareness of Islamic finance significantly influence their interest in such services.
Opportunities for Islamic Banking
There is significant potential for Islamic banking to grow in Spain, particularly by raising awareness and empowering Muslim women to participate in financial activities. Encouraging the flow of off-banking money into the financial sector can help integrate the Muslim minority more effectively into the economy.
Source: Emerald
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