Ahli Islamic, the Islamic banking arm of Oman's Ahli Bank, has launched a new investment vehicle catering to Sharia-compliant investors. The ahli islamic Money Market Fund is an open-ended fund designed to offer low-risk, short-term investments that adhere to Islamic principles.
This foray into Sharia-compliant money market funds reflects Ahli Islamic's commitment to expanding financial inclusion within the Islamic finance sector. The fund caters to investors seeking a Sharia-compliant avenue for their savings while preserving capital and ensuring liquidity.
Sharia, or Islamic law, prohibits activities like interest and speculation, which are seen as exploitative. Conventional money market funds typically generate returns through interest on invested capital. The ahli islamic Money Market Fund overcomes this hurdle by following Sharia-compliant financial instruments.
The fund invests in a diversified portfolio of Sharia-approved assets, including Islamic bank deposits, Islamic bonds (sukuk), and other permissible instruments. Sukuk, for instance, are Islamic bonds that represent ownership of an underlying asset, rather than debt obligations that accrue interest.
Ahli Islamic assures potential investors that the fund's Sharia compliance is overseen by a dedicated Shariah supervisory board. This board, comprised of Islamic scholars, meticulously reviews the fund's operations and investments to ensure strict adherence to Shariah principles.
The ahli islamic Money Market Fund is structured to provide investors with a balance of growth and liquidity. By targeting low-risk, short-term instruments, the fund aims to deliver consistent returns while maintaining a high level of accessibility. Investors can easily redeem their holdings, ensuring their capital remains readily available.
This new offering from Ahli Islamic is especially timely given the growing demand for Sharia-compliant financial products. Islamic finance is one of the world's fastest-growing financial sectors, driven by a large and underserved Muslim population seeking financial instruments that align with their religious beliefs.
The launch of the ahli islamic Money Market Fund strengthens Ahli Islamic's position as a prominent provider of Islamic banking solutions in Oman. It caters to a specific segment within the investment market while simultaneously promoting financial inclusion for Sharia-compliant investors.