Shariah funds offering super-ethical path for non-Muslims

With the UK's Muslims close to two million, Shariah funds are growing in number, and can also offer attractive opportunities for stringent ethical investors

With the number of Muslims living in the UK approaching two million, financial institutions are increasingly looking to cater for their needs with Shariah-compliant investments. There is also growing demand from non-Muslims who regard Shariah funds as a more stringent version of traditional ethical offerings. Typically, Shariah funds will avoid companies that generate profit from alcohol, gambling, pornography, pork products and the defence industry. They also avoid many financial services companies because of the principle of riba, which forbids receiving or paying interest - conside...