Wahed, the world’s leading Islamic fintech and investment manager, announced the launch of a groundbreaking suite of UCITS equity ETFs that integrate Shariah compliance with an additional discretionary review framework informed by Islamic values. Islamic values emphasise the protection of human rights and dignity, accountability for harm, and responsiveness to injustice – values Wahed’s framework seeks to uphold. This marks a pioneering development in the European ETF market, where established Shariah screening is supplemented by a structured evaluation of broader values considerations. The Funds are domiciled in Ireland, and have received Central Bank of Ireland approval.
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Pushing Ethical Boundaries
The ETFs launch with two flagship funds. Both funds will meet the rigorous requirements of Shariah compliance, such as excluding prohibited sectors like alcohol, gambling, and conventional banking etc.
In addition, Wahed applies an Islamic values-based Ethical and Human Rights Review across three key dimensions:
- Salience – the severity of potential human harm
- Responsibility – a company’s role in enabling or profiting from harm
- Responsiveness – the company’s willingness to improve and engage
This discretionary overlay supports a more values-aligned approach in line with broader Islamic ethical principles. To make this review, Wahed references globally respected, independent human-rights frameworks such as:
- OHCHR (UN Office of the High Commissioner for Human Rights)
- AFSC Investigate database (American Friends Service Committee)
- UFLPA Entity List (Uyghur Forced Labor Prevention Act)
- KLP Council on Ethics Exclusion List (Norway’s largest pension fund)
“This added layer is a natural extension of Islamic values. Principles like responsibility, the protection of human dignity, and the pursuit of good are all grounded in the very spirit of Shariah,” said Mohsin Siddiqui, Chief Executive Officer at Wahed. “Our ethical screening is rooted in the same values that inform Shariah: responsibility, compassion, and a duty to avoid harm. It brings those values into sharper focus in today’s world.”
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Pioneers in Islamic Finance
Wahed (who operate in the UK, US, Malaysia and the UAE) has already pioneered a range of products in Islamic finance, including the first Shariah-compliant ETFs listed on the Nasdaq. With a global client base of over 450,000 investors and over $1 billion in assets under management (AUM) across its entities, Wahed is recognised as a leader in democratising access to ethical finance. This new UCITS ETF suite builds on that proven track record, extending Wahed’s leadership into the European fund market.
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Active Management for Ethical Integrity
Wahed’s UCITS ETFs are filed as actively managed, allowing the firm to respond quickly to humanitarian concerns and new information. This ensures the funds remain aligned with Islamic values of accountability, justice, and protection of human dignity.
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Source : prnewswire