How to Seek Halal Financial Services: A Guide for Muslims

Given that eqt.com.au’s services are not Sharia-compliant, it’s crucial for Muslims in Australia and globally to understand how to seek and access financial services that align with Islamic principles. This involves a proactive approach to identifying reputable providers and understanding the core tenets of Islamic finance.

Read more about eqt.com.au:
Eqt.com.au Review and First Look: A Deep Dive into a Conventional Trustee
Examining Eqt.com.au’s Services: A Sharia-Compliant Perspective
Eqt.com.au: An Assessment of Legitimacy and Trustworthiness
Unpacking Eqt.com.au’s Financial Details and Email Format
Does Eqt.com.au Work? Operational Efficacy vs. Ethical Alignment
Is Eqt.com.au a Scam? A Thorough Investigation
Eqt.com.au: Pros and Cons (from a general, not Sharia-compliant, perspective)

Understanding the Core Principles of Halal Finance

• Prohibition of Riba (Interest): This is the cornerstone. Any transaction involving fixed or predetermined returns on loans or debt is forbidden. This impacts conventional loans, mortgages, bonds, and most traditional savings accounts.
• Avoidance of Gharar (Excessive Uncertainty/Speculation): Transactions must be transparent, and risks should be clear and known to all parties. This prohibits speculative trading, gambling, and overly complex derivatives where the outcome is highly uncertain.
• Prohibition of Maysir (Gambling): All forms of gambling, betting, and lotteries are forbidden. Investments should be based on productive economic activity, not chance.
• Investment in Halal Sectors: Investments must avoid industries considered impermissible (haram), such as:
  • Alcohol and tobacco
  • Pork and non-halal meat production
  • Conventional banking and insurance (due to riba)
  • Gambling and adult entertainment
  • Weapons manufacturing (if used for aggression)
• Emphasis on Ethical and Social Responsibility: Islamic finance encourages investments that benefit society, promote fairness, and contribute to sustainable development. This aligns with modern ESG (Environmental, Social, Governance) principles, but with specific Islamic ethical filters.
• Risk Sharing and Asset-Backed Transactions: Instead of interest, Islamic finance promotes profit-and-loss sharing (e.g., Mudarabah, Musharakah) and asset-backed transactions (e.g., Murabahah, Ijarah) where real assets underpin financial agreements.

Steps to Find Halal Financial Services

• Identify Dedicated Islamic Financial Institutions:
  • Look for banks, superannuation funds, wealth managers, and mortgage providers that explicitly state their commitment to Sharia compliance.
  • In Australia, examples include Hejaz Financial Services and Crescent Wealth.
  • Globally, institutions like Wahed Invest offer online Sharia-compliant investment platforms.
• Verify Sharia Certification:
  • Reputable Islamic financial institutions will have a Sharia Supervisory Board (SSB) or a Fatwa from recognised Islamic scholars.
  • The SSB independently reviews all products and operations to ensure compliance. Always look for evidence of such certification.
• Review Product Disclosure Statements (PDS) and Investment Mandates:
  • Carefully read the PDS for superannuation funds or investment products. Look for clauses detailing their ethical screening processes and how they avoid riba.
  • Ensure they explicitly state their commitment to investing only in Sharia-compliant assets and sectors.
• Enquire About Underlying Investments:
  • Don’t just take “ethical” at face value. Ask for details on the specific companies or asset classes the fund invests in. An “ethical fund” in conventional terms might still include interest-bearing bonds or companies involved in activities prohibited in Islam.
• Seek Advice from Knowledgeable Professionals:
  • Consult with financial advisors who specialise in Islamic finance or have a deep understanding of Sharia-compliant investments.
  • Connect with Islamic community organisations or scholars for guidance on specific financial matters.
• Consider Ethical Investment Platforms (with caution):
  • Some mainstream platforms offer “ethical” or “socially responsible” investment options. However, as mentioned, these may not align with all Sharia principles (e.g., they might still permit interest-bearing bonds). Always perform due diligence.
• For Philanthropy:
  • Utilise reputable Islamic charities that explicitly state they operate according to Sharia principles and ensure funds are collected, managed, and distributed ethically. Organisations like Islamic Relief Australia are excellent choices for charitable giving.
• Self-Education:
  • Invest time in learning the basics of Islamic finance. Resources from reputable Islamic finance academies, books (Islamic finance books), and online courses can empower you to make informed decisions.

By focusing on these steps, a Muslim can navigate the financial landscape to find services that not only “work” in a conventional sense but also adhere strictly to the ethical and moral guidelines of Islamic law, ensuring peace of mind and spiritual well-being.