Halal investments in Bangladesh are gaining attention as more investors seek financial instruments that align with Islamic principles. These investments follow Shariah law, which prohibits interest, excessive uncertainty, and certain industries like alcohol and gambling. Oversight is provided by Shariah boards to ensure all products and practices meet religious guidelines.
Financial institutions apply Shariah screening filters before offering investment products. For example, companies with over 30% interest-bearing debt or revenue from non-permissible activities are excluded. These filters help investors identify ethical options.
A growing number of Dhaka Stock Exchange (DSE)-listed companies now meet Islamic finance criteria. By 2025, about 35% are expected to be Shariah-compliant. This allows both institutional and retail investors to build diversified portfolios in line with faith-based requirements.
Bangladesh’s Islamic finance ecosystem includes ten fully Islamic banks and over 20 banks with Islamic windows. These operate under the supervision of internal and external Shariah boards. Although Bangladesh Bank hasn’t introduced standalone regulations for Islamic banking, existing guidelines support its growth.
Islamic banks offer various Shariah-compliant contracts:
Mudarabah (profit-sharing): Depositors share profits from investments.
Murabaha (cost-plus sale): Used for asset purchases, including homes and vehicles.
Ijarah (leasing): Common for vehicle and property financing.
Wakalah (agency-based investment): The bank invests on the client’s behalf for a fee.
Comparison of Islamic Banks in Bangladesh:
| Bank Name | Founded | Specialization | Shariah Oversight |
|---|---|---|---|
| Islami Bank Bangladesh PLC | 1983 | Pioneer, largest Islamic bank | Shariah Supervisory Committee |
| Al-Arafah Islami Bank | 1995 | SME & ethical development focus | Independent Shariah Council |
| Shahjalal Islami Bank | 2001 | Technology-driven Islamic banking | Internal Shariah Board |
Shariah-compliant mutual funds are regulated by both public and private asset managers. They exclude interest-based instruments and monitor portfolios for compliance.
Examples of Shariah-Compliant Mutual Funds:
| Fund Name | Type | Strategy | NAV/Unit (BDT) | Annual Return | Management Company |
|---|---|---|---|---|---|
| EDGE AMC Growth Fund | Open-end | Equity | 12.74 | 7.52% | EDGE Asset Management |
| EDGE High Quality Income Fund | Open-end | Fixed Income | 12.12 | 7.74% | EDGE Asset Management |
| EDGE Al-Amin Shariah Consumer Fund | Open-end | Shariah-compliant (Consumer) | 10.42 | 1.50% | EDGE Asset Management |
| 3i AMCL 1st Mutual Fund | Open-end | Balanced | 7.37 | -5.80% | 3i Asset Management |
| MBL 1st Mutual Fund | Closed-end | Balanced | 6.76 | 46.54% (accumulated) | LR Global Bangladesh |
| Trust Bank 1st Mutual Fund | Closed-end | Balanced | 6.76 | Not available | RACE Management |
| ICB AMCL Balanced Fund | Open-end | Balanced | Not available | Not available | ICB Asset Management |
| Grameen Mutual Fund One | Closed-end | Balanced | Not available | Not available | AIMS of Bangladesh |
Sukuk are asset-backed securities that do not involve interest. Used to finance infrastructure and development, Bangladesh’s first sovereign sukuk was issued in 2020.
Current Sukuk Investments in Bangladesh:
| Sukuk Name | ISIN | Tenure | Profit Rate | Structure | Purpose | Tradability |
|---|---|---|---|---|---|---|
| Safe Water Supply to the Whole Country | BDS092501059 | 5 years | 4.69% | Ijarah | Nationwide water supply | Tradable at negotiated price |
| Infrastructure Development of Govt Primary Schools | BDS092601050 | 5 years | 4.65% | Ijarah | School infrastructure (phase 1) | Tradable at negotiated price |
| IRIDP-3 Social Impact Sukuk | BDS092701051 | 5 years | 4.75% | Istisna'a & Ijarah | Infrastructure development | Tradable at face price |
| CIBRR-2 Socio-Economic Sukuk | BDS093201071 | 7 years | 9.25% | Istisna'a & Ijarah | Bridge construction | Tradable post 50% asset delivery |
| RDIRWSP Socio-Economic Development Sukuk | BDS093301072 | 7 years | TBA | Istisna'a & Ijarah | Road projects in Rajshahi | Tradable post 50% asset delivery |
Islamic real estate investment typically uses Ijarah and Musharakah models:
Lease-based returns instead of interest.
Gradual transfer of ownership.
Examples of Real Estate Investment Platforms:
LankaBangla Shariah-Compliant Funds
IDLC Islamic Real Estate Products
DBH Islamic Home Finance
Retail and institutional investors can access halal stocks via platforms like Musaffa or through DSE Shariah indices.
Sample Halal Stocks:
| Company Name | Ticker | Sector | Market Cap (BDT) |
|---|---|---|---|
| Grameenphone Ltd | BD:GP | Telecommunications | 447.08 Billion |
| Walton Hi-Tech Industries | BD:WALTONHIL | Consumer Electronics | 151.22 Billion |
| Islami Bank Bangladesh Ltd | BD:IBBL | Banking | Not specified |
| Al-Arafah Islami Bank Ltd | BD:AIBL | Banking | Not specified |
| First Security Islami Bank Ltd | BD:FSIBL | Banking | Not specified |
| Global Islami Bank Ltd | BD:GIB | Banking | Not specified |
Bangladesh has a DSEX Shariah Index that tracks screened stocks for Islamic compliance. For broader exposure, global halal ETFs are available:
| ETF Name | Ticker | Index Tracked | Compliance Standard | Excludes |
|---|---|---|---|---|
| SP Funds S&P 500 Sharia Industry ETF | SPUS | S&P 500 Shariah | AAOIFI / Dow Jones Islamic | Alcohol, gambling, pork, finance |
| Wahed FTSE USA Shariah ETF | HLAL | FTSE USA Shariah Index | AAOIFI | Tobacco, arms, adult content |
| iShares MSCI World Islamic ETF | ISWD | MSCI World Islamic Index | MSCI Shariah | Debt-heavy and non-halal companies |
Innovations include:
Takaful-linked funds for impact-based returns.
Islamic REITs focused on urban growth corridors.
Islamic venture capital for halal startups.
Investors use these resources:
DSE and CSE data
Shariah fund changes as signals
AmarStock & ShareBazar BD for discussions
Rural lending activity as informal indicators
Islamic Trading Platforms:
| Platform | Swap Free | Crypto | Stocks | Currency Pairs | Min. Deposit ($) | Regulation | Score |
|---|---|---|---|---|---|---|---|
| VT Markets | Yes | No | Yes | 55 | 100 | ASIC, FSCA | 8.7 |
| RoboForex | Yes | No | Yes | 40 | 10 | FSC | 9.0 |
| Exness | Yes | Yes | Yes | 100 | 10 | FCA, CySEC, FSCA | 8.9 |
| XM Group | Yes | No | Yes | 57 | 5 | CySEC, FSCA | 9.1 |
| TeleTrade | Yes | Yes | Yes | 60 | 10 | SVGFSA | 8.69 |
New models include micro-investments in digital waqf assets such as small clinics or farmland. Investors can also diversify risk by blending sukuk with different maturity timelines.
Halal investments in Bangladesh are accessible through regulated institutions and digital platforms. Tools like mutual funds, sukuk, equities, and waqf-based instruments offer flexibility and compliance. Both experienced and new investors can build ethical portfolios aligned with Islamic values.
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By Ravi Kumar