Wahed, the world’s leading Islamic fintech and investment manager, has announced the launch of a pioneering suite of UCITS equity ETFs that combine established Shariah compliance with an additional values-based ethical screening framework. This enhanced approach is informed by Islamic principles that emphasize the protection of human rights and dignity, accountability for harm, and responsiveness to injustice.
The launch marks a significant development in the European ETF market, as traditional Shariah screening is supplemented with a structured review of broader ethical and human-rights considerations. The funds are domiciled in Ireland and have received approval from the Central Bank of Ireland.
The new ETF suite launches with two flagship funds, both of which fully comply with Shariah requirements by excluding prohibited sectors such as alcohol, gambling, and conventional banking. These exclusions ensure alignment with core Islamic finance principles while maintaining broad equity market exposure.
In addition to Shariah compliance, Wahed applies an Islamic values-based Ethical and Human Rights Review across three key dimensions: the severity of potential human harm, a company’s responsibility in enabling or benefiting from harm, and the company’s responsiveness and willingness to improve. This discretionary overlay allows for a more values-aligned investment approach that reflects the broader ethical foundations of Islam.
To support this assessment, Wahed references respected and independent global human-rights frameworks, including the UN Office of the High Commissioner for Human Rights, the American Friends Service Committee Investigate database, the Uyghur Forced Labor Prevention Act Entity List, and the KLP Council on Ethics Exclusion List used by Norway’s largest pension fund.
Commenting on the launch, Mohsin Siddiqui, Chief Executive Officer of Wahed, said that the additional ethical layer is a natural extension of Islamic values. He emphasized that principles such as responsibility, compassion, and the protection of human dignity are deeply rooted in Shariah and are essential in guiding investment decisions in today’s world.
Wahed has previously pioneered several innovations in Islamic finance and operates across the UK, the United States, Malaysia, and the UAE. The company was the first to launch Shariah-compliant ETFs on Nasdaq and today serves more than 450,000 investors globally, with over $1 billion in assets under management across its entities. The new UCITS ETF suite builds on this track record, extending Wahed’s presence into the European fund market.
The UCITS ETFs are structured as actively managed funds, enabling Wahed to respond quickly to emerging humanitarian concerns and new information. This active approach helps ensure that the funds remain aligned with Islamic values of accountability, justice, and the protection of human dignity over time.
Wahed is a global Islamic fintech company dedicated to democratizing access to ethical investments. Licensed in more than ten countries, Wahed combines advanced financial technology with Shariah principles to deliver innovative investment solutions aligned with both faith and values. The company serves over 450,000 clients worldwide and manages more than $1 billion in assets across its entities.