A Guide to Islamic Investments
In today’s dynamic financial landscape, individuals from diverse backgrounds are seeking ways to grow their wealth. For Muslims adhering to sharīʿah law, traditional investment options may not always align with their ethical and religious principles. This blog serves as a comprehensive guide to Islamic investments, providing insight into why it matters and how it can help Muslims achieve financial prosperity while remaining faithful to their beliefs.
To navigate the world of Islamic investments effectively, it’s essential to grasp key concepts and terms:
It is absolutely important for one to familiarize themselves with these terms and concepts before diving into the world of sharīʿah compliant and Islamic financial Investments.
Sharīʿah-compliant investment funds are those that adhere to Islamic law.
Any activity that is prohibited by Islam, such as usury/interest (riba), gambling (maisir), or ambiguity (gharar), should not be included in a sharīʿah-compliant investment.
Islamic investment stands apart from conventional approaches due to its adherence to sharīʿah principles. Its core distinctions lie in avoiding Riba (interest), Gharar (excessive uncertainty), Haram (forbidden) activities, and excessive debt.
There are different aspects to Islamic or sharīʿah compliant Investments. These are the advantages:
To be more precise, we can discuss the following advantages as:
Unfortunately, sharīʿah-compliant investment options represent a relatively small portion of the global investment market compared to conventional investment options. This is because sharīʿah-compliant investments adhere to strict ethical and religious principles, which may limit the scope of available opportunities.
Regardless, Islamic investment options are broad and diversified, offering opportunities for wealth creation while upholding sharīʿah compliance:
Introducing Walton: A Shariah-Compliant Investment Option in the US
Walton is an international real estate asset management company specializing in pre-development land investments in the United States. They acquire undeveloped land and sell it to national homebuilders for development. With a history dating back to 1979, Walton currently administers over US$3.4 billion of real estate assets and has more than 98,000 acres of land assets under ownership/administration in 24 major North American markets.
Key Points About Walton:
Shariah-Compliant Investment Option:
The Exit-Focused Pre-Development Land (EFPDL) product by Walton has been approved as a Shariah-compliant investment option. The approval comes from esteemed scholars and experts in the field of Shariah.
Scholars Who Approved the Product:
Walton’s Project at Peakview Commercial: A Shariah-Compliant Investment Opportunity
After gaining an understanding of Walton’s commitment to Shariah-compliant investments, let’s take a closer look at one of their noteworthy projects that exemplifies these principles in action. Walton’s dedication to responsible land development and economic inclusivity is evident in their Peakview Commercial project.
Walton’s administration of the Peakview Commercial project exemplifies its commitment to Shariah-compliant real estate investments. This project, spanning approximately 17.6 acres of land near Fort Collins, Greeley, and Denver in Colorado, USA, aligns with Islamic principles in several ways.
Strategic Location and Land Use:
Peakview Commercial is strategically situated adjacent to the future positioning of the community’s retail and apartment buildings. It’s also in close proximity to Prairie Heights Middle School and a future city park site. This careful planning reflects Walton’s dedication to responsible land development, considering the needs and amenities of the community.
The proposed land use for Peakview Commercial is neighborhood retail and multifamily, emphasizing the creation of spaces for families and businesses to thrive, which is in line with the values of community and social responsibility upheld by Shariah-compliant investments.
Population Growth and Affordable Housing:
Weld County, the location of the Peakview Commercial project, has witnessed significant population growth, with a 34.5% increase between 2010 and 2021. The demand for affordable housing in suburban areas like Weld County has surged due to the tight inventory and rising home prices in metropolitan Denver.
From an Islamic finance perspective, providing affordable housing and meeting the housing needs of a growing population aligns with the principles of social equity and economic inclusivity, which are integral to Shariah-compliant investments.
Metro Denver, where this project is situated, offers a competitive business environment and hosts the headquarters of 10 Fortune 500 firms based in Colorado. This demonstrates economic diversity and stability, aligning with the financial sustainability aspect of Shariah-compliant investments.
Denver International Airport, one of the world’s busiest airports, enhances connectivity and trade opportunities, contributing to the economic growth and stability of the region.
Walton’s Peakview Commercial project stands as a testament to its commitment to Shariah-compliant investments. By strategically planning land use, addressing the affordable housing demand, and fostering economic opportunities, Walton not only adheres to Islamic principles but also contributes to the development of a thriving and inclusive community. Investors seeking Shariah-compliant options can consider Walton as a responsible and ethical choice in the realm of real estate investments.
In conclusion, the world of Shariah-compliant or Islamic investments offers a compelling path for individuals seeking both financial growth and ethical alignment with their beliefs. Walton, as a notable example in this realm, showcases how responsible land development, addressing housing needs, and fostering economic opportunities can harmonize with Islamic principles. It serves as a testament to the broader idea that sound financial decisions can be seamlessly integrated with ethical values. Whether you explore options like Walton or other Shariah-compliant investments, remember that by making conscious choices, you can build your wealth while staying true to your faith and principles. These investments not only offer financial growth but also contribute to the creation of vibrant, inclusive communities, embodying the true spirit of Islamic finance.