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MELBOURNE, AUSTRALIA, December 08, 2021 /24-7PressRelease/ -- Investing is known to be one of the most effective ways to secure a financially stable – even affluent – future. But how can Muslim Australians invest ethically, in ways that align with their beliefs? Halal finance experts Hejaz Financial Services explain.
The Australian public – both Muslim and non-Muslim – are increasingly demanding more ethical channels through which to invest their money and superannuation. For non-Muslim Australians, the definition of 'ethical' is broad and far reaching; for Muslims, however, there are a few more regulations.
Islamic finance providers Hejaz Financial Services reports that the Sharia dictates how money can be spent, invested and managed. When taking out a Halal home loan, for example, the Sharia states that money should not be made from money, so interest will never be charged on Sharia loans. Similarly, there are a number of specific regulations for investing in a Halal way.
Hejaz Financial Services's CEO Hakan Ozyon explains that the Islam finance sector is bound by the following regulations: income earned from non-Islamic dealings must be below 5% of total revenue; a company's debt must not exceed 30% of its market cap; account receivables should be less than 49% of total assets; and money must only be invested in activities permissible under the Sharia.
Forbidden activities include banks, alcohol, media, interest, military and pig products. Business activities that are acceptable under the Sharia include property, healthcare, utilities, technology, telecommunications and infrastructure. Additionally, Halal investments must avoid speculation and uncertainty.
The aim of building a diverse investment portfolio in a Sharia-compliant manner is to see a healthy return on ethical investments that don't put the investor at risk of losing money or supporting haram (outlawed) causes and industries – after all, explains Hejaz Financial Services, Islam is all about making the world a better place while achieving maximum benefit.
To learn more about Halal loans, investing and more, contact Hejaz Financial Services, who are currently in the process of applying to become the very first Australian, 100% digital Islamic bank.
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