Let’s be honest: if someone told you in 2010 that you could invest ethically, in line with Islamic values, and still get good returns — you might’ve thought they were selling camel oil.
Fast forward to today, and you might be looking at your CPF, blinking at your savings account, and wondering: Did I miss something?
Well… yes. But don’t panic just yet.
Halal ≠ Low Returns
Contrary to what some believe, Shariah-compliant investing is not about saying “no” to everything fun and profitable. It’s about saying “yes” — but responsibly.
Take gold, for example. If you had invested just $1,000 in gold back in 2010, you’d be looking at around $2,300 today. Not bad for something mentioned in the Quran.
And what about Sukuk (Islamic bonds)? Malaysia and the UAE have been issuing them for decades, and Singapore-based investors can access them via certain ETFs or global Islamic funds.
Even better, there are now Shariah-compliant robo-advisors like Wahed Invest — regulated by MAS and reviewed by Shariah scholars like Dr. Mohd Daud Bakar. You can start with as little as $100.
A Missed Decade of Barakah?
Between 2010 and 2020, while many were chasing stocks that rhyme with “blamazon”, halal options quietly delivered consistent — and peaceful — growth.
✅ Gold Savings (Shariah-compliant)
If you had started a UOB Gold Savings Account — which operates without interest and follows gold price movements — you’d have seen gold rising from about USD $1,100/oz in 2010 to over USD $2,300/oz in 2024. That’s more than doubling in 14 years, without touching haram assets.
✅ Halal Robo-Advisors
Wahed Invest Singapore, a MAS-regulated Islamic robo-advisor, provides portfolios screened by certified scholars. Their moderate-risk portfolio has returned about 7 to 9% per annum on average since inception — comparable to conventional ETFs. They exclude interest-based finance, alcohol, tobacco, and unethical sectors.
✅ Sukuk and Islamic REITs
Islamic bonds (Sukuk) and REITs screened for Shariah-compliance are accessible via funds like the Franklin Global Sukuk Fund (SGX-listed fund example) or Islamic REIT ETFs via global brokers. While not every REIT qualifies, those that do offer exposure to property — minus the riba.
✅ Islamic Unit Trusts in Singapore
Platforms like FSMOne and PhillipCapital occasionally carry Islamic-compliant funds (though choices are limited — hence the importance of a qualified Shariah adviser).
So yes, halal investing was not just possible. It was profitable too.
What Does Islam Say?
“O you who believe! Do not devour interest, doubled and multiplied, but fear Allah so you may be successful.”
(Surah Al Imran, 3:130)
The Prophet ﷺ said:
“When a man earns a lawful income and spends on his family… it is charity.” (Musnad Ahmad)
Islam never discouraged wealth — just the toxic shortcuts.
But I’m Not a Scholar…
And you shouldn’t try to be one when investing either.
Navigating halal investment is not just about avoiding pig stocks or beer companies. It’s about understanding financial instruments, contracts, and screening ratios.
That’s why qualified Shariah-compliant advisers exist. They help you invest in ways that grow your wealth and your peace of mind.
MUIS explains that it does not certify individual stocks or investment portfolios. Investors still need to examine the company, the nature of its business and the relevant Shariah screening criteria.
Read MUIS guidance on investing in the Singapore stock market
What Now?
It’s not too late to start. Here’s what you can do:
- Learn how Shariah screening works before choosing a product.
- Verify any financial representative through the MAS Financial Institution Representatives Register.
- Understand the fees, risks, holdings and exit conditions before investing.
- Invest only money that you can afford to expose to market risk.
Closing Thoughts
Halal investing is not about proving that Muslims can outperform everyone else. It is about trying to grow wealth through investments that fit the religious principles you follow while still respecting ordinary financial risk.
Barakah that shows up not only in your returns, but in how you use them:
- Giving to charity without thinking twice
- Helping your parents or relatives without waiting for payday
- Saving wisely for your children’s future
- Investing in your akhirah while planning for retirement in this world
It’s not about stacking cash just to flex in front of a Ferrari — even if it can get you to KL in under an hour.
And no, you really don’t need five different Prada colours “just because it’s payday”.
Responsible investing should leave you understanding what you own, why you own it and what could go wrong. Religious labels should add discipline to that process, not replace financial due diligence.
So the next time someone tells you that Shariah-compliant investing is limiting, smile, sip your teh tarik, and say:
“It’s not about limits — it’s about purpose.”
Advertiser Opportunity
Rethinking Islam welcomes suitable Singapore financial professionals who can contribute clear educational information about halal investing and financial planning.
This space does not represent a current financial sponsor.
Investments come with risks — even those that are Shariah-compliant — and past performance is not a guarantee of future returns. Rethinking Islam is not liable for any financial decisions made based on this content.
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