As the month of Ramadan has come to a close, Muslims around the world have spent the last thirty days in a state of reflection, compassion, and solidarity.
This year, we have all had one thing on our minds: the suffering of our Muslim brothers and sisters around the world.
As an investor, as a financial educator, as a consumer, as a mother and as a Muslim – many of my discussions this month have centred around ensuring our money is in no way contributing to the atrocities taking place around the world.
Many of my clients have asked how they can ensure their investments are BDS friendly – and until recently it was a very tedious process.
This year, Muslim finance companies have been actively engaging in an important movement within the Islamic finance industry.
These companies are stepping up their efforts to demand more transparency and ethical screening in investment practices, particularly concerning the issue of genocide.
The Updates
One of the leading halal investment tools Zoya has partnered with the American Friends Service Committee (AFSC) to introduce innovative screening features.
You can now find a “Controversies” screening feature within the app that allows Muslim investors to align their financial portfolios with their ethical principles. This feature educates investors on potential ethical concerns and human rights violations linked to certain companies.
By flagging involvement in problematic industries like prisons, immigrant surveillance, militarized borders, or occupied territories, Muslim investors can now make more informed decisions, ensuring their investments uphold not only Shariah compliance but also social consciousness.
In addition to this new feature, Wahed has issued a call to action within the Islamic finance community.
In a heartfelt letter, Wahed demands the urgent need for explicit consideration of a company’s support of genocide in the current Shari’ah screening methodology.
This would mean all shariah compliant companies would have to be screened for their involvement in any genocide worldwide, essentially making all halal investments BDS friendly.
Drawing from the teachings of the Quran and Hadith, Wahed emphasizes the moral obligation to confront issues of complicity in grave injustices.
The proposal to include support for genocide as a criterion in AAOIFI’s Shari’ah screening methodology reflects a commitment not only to compliance but also to the broader principles of social responsibility and ethical integrity.
This initiative comes at a time when the finance industry worldwide is increasingly embracing Environmental, Social, and Governance (ESG) principles.
By advocating for the inclusion of support for genocide as a criterion, Muslim finance companies are leading the way towards a more holistic and compassionate approach to investment practices.
What this means for us
It is even more important for Muslims to understand investing and how to use these tools to ensure our money is being invested in both ethical and halal companies.
By educating yourself about the screening processes and leveraging tools like Zoya, you can invest with confidence and integrity.
As Ramadan reminds us of the importance of empathy, justice, and accountability, let us all do our part in ensuring our finances are being managed in a way that is in alignment with our faith.
Together, we can build a financial ecosystem that not only follows Shariah principles but also embodies the values of compassion, equity, and integrity, enriching the lives of communities and upholding the dignity of all humanity.
