Islamic Funds Premier in Sweden
Wednesday saw the start of Sweden’s first Islamic investment fund which adheres to the Shariah rule.
Fund management company Selector Management has created the “Selector world shariah value” fund in response to the great demand for so-called shariah funds in Sweden.
The fund adheres to Islamic criteria and includes 100 international companies who may not deal with weapons, finance, pornography or alcohol.
Avanza Bank also offers the fund and told Dagens Nyheter newspaper that their clients had been asking about Shariah funds for a long time. The Dow Jones Islamic market index started ten years ago, so it was only a matter of time before a Shariah fund would reach Sweden, said Avanza’s economist Claes Hemberg.
The Shariah fund is especially of interest to those devout Muslims who do not have savings or other investments, because the Koran forbids Muslims from paying or demanding interest. Until now, Sweden’s financial services have not catered to Muslims.
Internationally, there are 88 Islamic funds worth 5.9 billion dollars.