Final yr, we revealed an version of Finovate International that featured new developments in Islamic finance. This week’s column will discover additional the world of Islamic and Shariah-compliant monetary providers with Dilshod Jumaniyazov, CEO and co-founder of Musaffa.
Launched in 2020 and headquartered in New York, Musaffa presents a complete platform for moral investing, Halal inventory buying and selling, and monetary schooling. Greater than 487,000 Muslim traders in 195 international locations use Musaffa’s platform, which offers entry to shares in international locations starting from the U.S., U.Okay., and Australia to Malaysia, the UAE, and Turkey.
Musaffa not too long ago launched its Purification Calculator, which allows Muslim traders to confidently determine and put money into Shariah-compliant companies. And at a time when extra traders are in search of investments that align with their values, Musaffa’s superior screening instruments, monetary schooling, and different options may be helpful to ESG-oriented traders in addition to faith-based ones.
In our prolonged dialog, Jumaniyazov helps us perceive the scale and scope of Islamic and Shariah-compliant finance, the distinctive wants of the purchasers on this rising market, and the way enabling applied sciences are bringing innovation to Islamic monetary providers in areas akin to banking to wealth administration.
How huge is the marketplace for Shariah-compliant monetary options? How has this market grown within the West particularly? Are there international locations within the West the place the demand for Shariah-compliant monetary options is particularly sturdy?
Dilshod Jumaniyazov: The marketplace for Shariah-compliant monetary options isn’t just huge—it’s rising quick. In 2022, the worldwide Islamic finance trade expanded by 11%, reaching $4.5 trillion in property, and it’s anticipated to develop to $6.7 trillion by 2027, based on the ICD-LSEG Islamic Finance Growth Report 2023.
Within the West, Islamic finance has gained vital traction, significantly because the 2008 monetary disaster, when it emerged as a extra steady and moral different. Within the U.Okay., Islamic banks have doubled their property over the previous decade, reflecting a rising demand for Islamic finance. Sukuk issuances have additionally elevated throughout Europe, with international locations like Luxembourg and Germany main the cost. The broader pattern of sustainable and values-based investing has performed a vital position in driving this development.
Sure Western international locations stand out for his or her sturdy demand. Based on International Finance Journal, the U.Okay. is a transparent chief, serving as a worldwide hub with 5 Islamic banks and greater than 20 standard banks providing Shariah-compliant merchandise. Luxembourg, the primary Eurozone nation to subject a sovereign sukuk, hosts a variety of Shariah-compliant funds. Germany has made vital strides by issuing sukuks and licensing its first Islamic financial institution, highlighting its rising curiosity within the sector. In the meantime, France, with Europe’s largest Muslim inhabitants, holds monumental untapped potential regardless of its comparatively underdeveloped Islamic finance market.
This mix of moral investing and rising demand in key areas has positioned the West as an rising power in Shariah-compliant finance.
What are we speaking about once we speak about Shariah-compliant finance? How is it totally different from financing within the West?
Jumaniyazov: Shariah-compliant finance is rooted in Islamic rules that emphasize equity, transparency, and social duty. It prohibits incomes or charging curiosity (riba), extreme hypothesis (gharar), and investments in dangerous industries akin to playing, alcohol, and weapons. As an alternative, it focuses on moral investing, risk-sharing, and linking all monetary transactions to actual financial actions. For instance, somewhat than counting on conventional interest-based loans, Shariah-compliant finance makes use of fashions like mudarabah (profit-sharing) and musharakah (joint ventures), the place dangers and rewards are shared amongst all events. This strategy ensures that monetary actions create tangible worth and profit society.
What units Shariah-compliant finance aside from Western finance is its deeply embedded moral framework. Whereas Western finance typically revolves round interest-bearing loans and speculative investments, Shariah-compliant finance requires each transaction to align with ethical rules and financial justice. It’s not nearly revenue — it’s about creating shared prosperity and avoiding hurt. This concentrate on fairness, accountability, and real-world affect makes Shariah-compliant finance a compelling different, particularly for these searching for a extra values-driven strategy to managing wealth.
How has digital transformation impacted the marketplace for Shariah-compliant finance. Has expertise made it simpler to innovate and create new options for the neighborhood?
Jumaniyazov: Digital transformation has utterly reshaped the panorama of Shariah-compliant finance, making it extra accessible and modern than ever earlier than. With the rise of digital banking and cell fee platforms tailor-made to the wants of Muslim customers, monetary providers at the moment are reaching communities that have been beforehand underserved. This has opened up alternatives for development and inclusion on a worldwide scale.
Expertise has additionally sparked thrilling developments like digital sukuks and blockchain-based sensible contracts, which align completely with Islamic rules. These improvements haven’t solely made processes extra environment friendly, however have additionally launched solely new methods to strategy halal and moral finance. By breaking down limitations and lowering prices, digital transformation has turned Shariah-compliant finance right into a dynamic, forward-thinking sector that’s extra related than ever in in the present day’s world.
Is there a job for AI in Shariah-compliant finance?
Jumaniyazov: AI is revolutionizing Islamic finance by making it extra environment friendly, modern, and accessible whereas staying true to its moral rules. Certainly one of its most vital contributions is in screening shares and ETFs for Shariah compliance. AI can analyze massive datasets to evaluate whether or not investments meet Islamic standards, streamlining a course of that will in any other case be time-intensive and complicated. This ensures that traders can confidently align their portfolios with their religion.
AI can also be reworking Islamic monetary merchandise, akin to sukuk. By enabling sensible contracts, it has improved the transparency, effectivity, and trustworthiness of sukuk issuances. With purposes like blockchain integration and superior analytics, AI isn’t just addressing operational challenges but additionally opening doorways for innovation, making Islamic finance extra dynamic and globally related whereas adhering to Shariah rules.
You might be CEO of Musaffa, an organization that has developed Shariah-compliant options. Are you able to inform us slightly about Musaffa and the way you got here to co-found the corporate?
Jumaniyazov: After all. The journey to founding Musaffa started with a deeply private problem. Over my 16 years of investing, I typically confronted a dilemma — questioning whether or not my investments aligned with my religion and values as a Muslim. Each time I ventured into the inventory market, I carried the load of uncertainty, questioning if I used to be compromising my rules. As I shared my experiences with pals and colleagues, I noticed this was not simply my wrestle — it was a problem confronted by thousands and thousands of Muslims worldwide in a monetary panorama that provided little steerage or transparency for faith-aligned investing.
This realization sparked a imaginative and prescient over a decade in the past: to create a platform that will empower Muslims globally to take a position ethically and confidently whereas staying true to their religion. Nonetheless, I shortly acknowledged that making this imaginative and prescient a actuality required extra than simply ambition. It demanded deeper information, broader expertise, and substantial capital.
Decided to bridge these gaps, I pursued an MBA on the College of Illinois at Urbana-Champaign and earned my CFA designation to strengthen my experience in finance. I gained invaluable expertise working with the expertise group at Wells Fargo Securities, the place I contributed to launching a number of buying and selling platforms. Alongside this, I saved diligently, setting apart funds from my paychecks and 401(okay) financial savings over time. By late 2020, with $250,000 of my very own financial savings, I used to be able to deliver Musaffa to life.
Musaffa is greater than only a platform — it’s an answer to a deeply felt drawback. At its core, Musaffa offers entry to over 90,000 shares and 9,000 ETFs globally, all meticulously analyzed for Shariah compliance. The platform allows customers to seamlessly purchase and promote halal shares by way of an built-in community of brokerages.
Schooling is one other cornerstone of our mission. By Musaffa Academy, we provide tailor-made programs in monetary literacy and Islamic finance, equipping our customers with the information to make knowledgeable choices. These instruments are designed not simply to assist Muslims make investments, but additionally to empower them to know and take management of their monetary journeys.
Because of this, Musaffa has grown to serve over 482,000 customers throughout 195 international locations. Our customers belief us to supply peace of thoughts and a technique to align their investments with their religion. With options like superior Shariah compliance screening, built-in buying and selling choices, and a strong instructional platform, Musaffa has turn into a trusted companion for Muslim traders worldwide.
Wanting forward, we’re excited to broaden our choices by launching proprietary Shariah-compliant ETFs and additional integrating into world markets. Our purpose is to make halal investing much more accessible and to proceed simplifying entry to the $30 trillion Shariah-compliant market.
What units Musaffa aside usually are not simply the instruments we offer however our unwavering dedication to fixing actual challenges. We’re not simply providing a platform; we’re creating a worldwide monetary ecosystem rooted in religion, belief, and ethics.
At present, I’m extremely happy with how far Musaffa has come. It stands as a testomony to years of dedication, the assumption that monetary success ought to by no means come on the expense of 1’s values, and a imaginative and prescient that’s empowering Muslims around the globe to take a position with confidence and function.
Who’re Musaffa’s major prospects and the way do you attain them?
Jumaniyazov: Musaffa’s major prospects are particular person traders worldwide who search to put money into alignment with their values, in addition to each Islamic and conventional monetary establishments. We have interaction with them by way of a strategic mixture of focused digital campaigns, partnerships with Islamic organizations, and our sturdy schooling platform, Musaffa Academy, which drives nearly all of our site visitors. Moreover, we leverage the Musaffa Ambassador Program, which empowers passionate people to signify our model and produce extra customers to the platform. Phrase-of-mouth referrals additionally play a pivotal position in constructing belief and increasing our attain inside this values-driven viewers. Collectively, these channels foster a powerful and genuine reference to our prospects.
You latterly launched a Purification Calculator? Are you able to inform us about this resolution: why you launched it, what it does, and the way the reception of it has been to date?
Jumaniyazov: The Purification Calculator is an indispensable instrument designed to make sure that Muslim traders can preserve Shariah compliance of their investments. Purification is a compulsory situation for any funding to be thought-about Shariah-compliant, because it includes cleaning portfolios of any unintended non-compliant earnings. The calculator simplifies this course of by figuring out the precise quantity that needs to be donated to charity, enabling traders to align their earnings with Islamic rules.
We launched this resolution to handle a important concern for Muslim traders and to simplify a course of that many discovered complicated or unsure. The suggestions has been overwhelmingly optimistic, because the instrument empowers customers to take a position with confidence, understanding their monetary actions align with each their religion and values.
What are a number of the most fascinating issues occurring in Islamic finance proper now to you personally?
Jumaniyazov: For me, some of the thrilling developments in Islamic finance is the rising concentrate on halal funding analysis. With extra Muslims eager to align their monetary choices with their religion, the demand for instruments and analyses to determine Shariah-compliant alternatives is stronger than ever. This isn’t nearly screening shares; it’s about offering in-depth analysis and actionable insights that assist traders make assured, knowledgeable choices in a posh market.
One other space I discover fascinating is how digital platforms are reworking entry to halal investments. From sukuk to Shariah-compliant ETFs and shares, expertise is making it simpler for individuals to search out and put money into Shariah-compliant and moral property. This mix of analysis and innovation is bridging a important hole for Muslim traders, serving to them develop their wealth whereas staying true to their values; it’s an thrilling time to see how the trade is evolving to fulfill each faith-driven and monetary wants.
What can we count on to listen to from Musaffa in 2025?
Jumaniyazov: In 2025, at Musaffa, we plan to launch a complete Islamic finance schooling platform, introduce our proprietary Shariah-compliant buying and selling platform, and start providing unique Shariah-compliant ETFs following SEC licensing approval. Our purpose is to solidify our place because the premier world platform for halal investments whereas considerably increasing our consumer base.
Right here is our take a look at fintech innovation around the globe.
Central and Southern Asia
Latin America and the Caribbean
Blockchain and cryptocurrency infrastructure firm Binance gained approval from the Central Financial institution of Brazil to accumulate a regionally licensed broker-dealer.
Union Financial institution of India launched new accessibility options to its Digital Rupee app.
Chilean fintech Tanner Servicios Financieros raised $40 million in funding from the Worldwide Finance Company.
Asia-Pacific
Sub-Saharan Africa
South African fintech Sourcefin raised $8.2 million in funding to help SME financing.
Monetary providers supplier Mukuru secured a Deposit-Taking Microfinance Establishment (DTMFI) license in Zimbabwe.
Nigeria-based Bankit MFB launched its new net banking platform.
Central and Japanese Europe
Digital asset infrastructure firm Taurus expanded its operations in Turkey.
Serbian IT firm Saga teamed up with Salt Edge to assist banks in Serbia benefit from alternatives in open banking.
German fintech Cleversoft introduced its intention to accumulate Turkish monetary messaging and AML compliance options supplier Fineksus.
Center East and Northern Africa
Qatar-based Doha Financial institution to go dwell with Visa Industrial Pay, the primary financial institution out there to take action.
Iraqi fintech firm Qi Card launched its app SuperQi, which serves as each a way of life tremendous app and a digital financial institution.
Italian software program firm TeamSystem acquired Israeli fintech Morning for $150 million.
Fascinated with demoing at FinovateEurope 2025 in London? Purposes are nonetheless being accepted from modern firms with new options which can be prepared to indicate. Go to our FinovateEurope hub in the present day to be taught extra.
Picture by Aa Dil
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