SHARIAH FINANCE WATCH: The Arab economic boycott of Israel has mostly disappeared. But now it lives on, in the Dutch stock exchange. Businesses dealing with alcohol, the sex industry, financial services - they are all banned by Sharia law due to what they do. Businesses in Israel are banned due to what they are. Are Arab-Israeli businesses banned as well? Would anybody think it strange?
Apparently, nobody thinks it strange, or hypocritical, that Sharia compliant funds can’t invest in Israeli businesses, while investing in American businesses on a Dutch stock exchange (two countries with military forces in Muslim countries) is completely ok.
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Investors in the Amsterdam stock exchange can now also invest in shares that conform to the Islamic rules of the Sharia.
There are three exchange trade funds available: a worldwide fund, a fund specializing in upcoming market and a fund investing in American businesses.
Pure Islamic fund are availalbe in other lands, such as the US and the London exchange. In Amsterdam, Barclays Global Investors listed five new exchange traded funds, or ishares, on Tuesday of which three conform to Sharia. These shares will follow a specified index.
Muslims who want to invest according to laws of sharia, may not put their money into companies that do ‘wrong’ business according to Islamic laws.
The Sharia doesn’t allow investing in companies that produce alcohol, have to do with the sex industry or financial institutions. The latter sector works with interest, riba in Arabic, and Muslims can’t collect it according to Sharia. The funds also don’t invest in companies from Israel. Investors in Amersterdam stock exchange can invest in shares that conform to the Islamic rules of Shariah >>> By Allyson Rowen Taylor
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