Invest the Shariah-compliant way

Discover Shariah-compliant investment opportunities that uphold your values, providing transparency and confidence in every decision you make

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shariah compliant

About shariah compliance

What is Shariah-compliant investment?

All the financial transactions must comply and conform to the following Islamic rules and principles

  • Justice (Adl)

    Justice (Adl)

    The rights of all parties in a transaction are upheld, ensuring that no one is wronged or taken advantage of.

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      Fairness

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      Transparency

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      Honesty

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      Unjust

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      Exploitation

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      Deceit

  • Mutual Consent (Rida)

    Mutual Consent (Rida)

    Transactions are based on voluntary, and informed terms, respecting the autonomy of all parties.

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      Free will

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      Mutual agreement

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      Manipulation

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      Coercion

  • Avoidance of Harm (Darar)

    Avoidance of Harm (Darar)

    Transactions are conducted ethically, ensuring no harm to any party.

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      Fair distributions

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      Transparency

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      Ethical activities

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      Interest

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      Gambling

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      Harmful activities

  • Transparency (Wadihah)

    Transparency (Wadihah)

    Transactions are performed with transparency, fostering trust with investors.

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      Clear terms

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      Hidden information

  • Respect for Rights (Huqūq)

    Respect for Rights (Huqūq)

    The rights of all parties involved are upheld in every transaction.

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      Due diligence

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      Respect ownership

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      Clear records

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      Uncertainty

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      Taking without consent

ADHERING TO STANDARDS

What makes a campaign Shariah compliant?

Our Shariah advisors carefully review the Securities Commission of Malaysia's toolkit to ensure compliance with Islamic principles

Business or activity screening

An Issuer's revenue or profit before tax (PBT) from non Shariah-compliant activities must stay within set benchmarks:

5%

Applicable to the following businesses/activities:

  1. Conventional banking and lending
  2. Conventional insurance
  3. Gambling
  4. Non-halal food and beverages
  5. Other activities deemed non-compliant according to Shariah principles as determined by the Shariah Advisor
20%

Applicable to the following businesses/activities:

  1. Share trading
  2. Stockbroking business
  3. Rental received from Shariah non-compliant activities
  4. Other activities deemed non-compliant according to Shariah principles as determined by the Shariah Advisor
Read more →

Financial ratio screening

The interest and interest-based elements in the Issuer's balance sheet must not exceed the specified benchmarks:

<33%

Cash over
total assets

<49%

Debt over
total assets

Only cash in conventional accounts is included. Cash in Shariah-compliant accounts is excluded.

WHO IS IT FOR

Ethical investing is for everyone

  • Are you looking for investments that promote positive social impact?

    Shariah-compliant investing is ideal as it encourages investments that contribute positively to society, supporting industries that create value in a socially responsible way.

    Social Impacts

    • Education

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    • Healthcare advancement

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    • Renewable energy

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    • Technology

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  • Do you prefer to invest in industries that align with your values and ethical standards?

    Under Shariah principles, industries that could negatively impact individuals, society, or the environment are deemed forbidden.

    What should I avoid?

    • Exploitation

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    • Any unethical practices

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    • Harmful activities

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    • Uncertainty

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FOR INVESTORS

Benefits of investing in Shariah-compliant investments

  • Ethical and social responsibility

    Ethical and social responsibility

    Shariah-compliant investing aligns with Islamic values and avoids prohibited industries, while promoting social good through sectors like healthcare and renewable energy.

  • Risk-sharing and fairness

    Risk-sharing and fairness

    The profit and loss are equally shared, where both investor and business owner share risks and rewards, unlike traditional fixed-return finance.

  • Diversification of investment options

    Diversification of investment options

    Offers a range of products, including Shariah ECF, allowing investors to diversify portfolios while following Islamic principles.

  • Increased transparency and accountability

    Increased transparency and accountability

    Investments involve clear contracts to avoid ambiguity and include oversight to maintain ethical standards and reduce fraud.

FOR FOUNDERS

Why fundraise a Shariah-compliant campaign?

Start a campaign application →
  • Alignment with a growing market

    Alignment with a growing market

    The rise in demand for ethical and socially responsible investing aligns with Shariah-compliant investing, offering a way to contribute positively to society while achieving financial returns.

  • Market differentiation

    Market differentiation

    Adhering to Shariah principles gives businesses a competitive advantage by attracting investors, enhancing reputation, and expanding access to a broader, socially-driven investment base.

IDENTIFYING SHARIAH COMPLIANT CAMPAIGNS

How to spot Shariah-compliant campaigns on our website?

Simply look for the tag 'Shariah-compliant' when browsing campaigns

Browse ongoing campaigns →View funded campaigns →
shariah campaign cardshariah campaign card

OUR ASSURANCE

Leave no room for doubt in your portfolio

We guarantee that all Shariah-compliant investment opportunities fully meet regulatory standards, offering you peace of mind with every investment

  • Oversight by Shariah Advisors

    Oversight by Shariah Advisors

    Advice and consultation provided through pitchIN's engagements with issuers from start till end of the process.

  • Recognized Market Operator

    Recognized Market Operator

    Licensed by the Securities Commission (SC) to facilitate Shariah-compliant Equity Crowdfunding (ECF) offerings.

  • Thorough screening process

    Thorough screening process

    At pitchIN, Shariah screening is mandatory for issuers offering Islamic deals, based on the Securities Commission’s Toolkit.

Frequently asked questions

What kind of returns can I expect from Shariah-compliant campaigns?
The returns from Shariah-compliant investments can be diverse, ranging from modest and stable income to high-growth opportunities. Read more here.
How does pitchIN ensure ongoing Shariah compliance throughout the fundraising process?
Our Shariah Advisors will provide their advice and consultation through pitchIN’s engagements with Issuers from the start of the fundraising stage and continuously during the post-fundraising stage.

There is also an additional measure of transparency whereby our Shariah Advisors will conduct a Shariah Compliance Review every year as monitoring Shariah status based on the issuer’s latest audited financial statements and Self-Declaration Checklists.

This is comparable to the Shariah compliance review undertaken for public-listed companies.
Can non-Muslim investors invest in Shariah-compliant campaigns?
Yes. Despite it being Shariah-compliant, it is not only limited to Muslims. It is available and accessible to anyone.
What happens if a company in which I have invested violates Shariah principles?
If there is non-compliance by the Issuer, pitchIN will work with the Issuer to rectify the non-compliance factor within a certain period, e.g., 1-2 months. To guide the Issuer through this process, we will provide a rectification plan to the Issuer with guidance from our Shariah Advisors.

In the event that the Issuer did not comply with the rectification plan or has expressed its desire to proceed with the non-compliance factor, pitchIN may declare the Issuer as Shariah non-compliant.

Since the reclassification as Shariah non-compliant may result in certain implications to the Shariah-compliant deal (i.e., exit by Investors), the reclassification will only be carried out as a last resort.
Warning
Equity Crowdfunding is risky. You are investing in early stage companies which may not do well and could even fail. You could lose part or all of your investment. You may not be able to sell your shares easily. Learn more