TrustArthur, a Nigerian asset management company, hosted its first webinar under the heading “Shariah Compliant Equities: Global and Local Opportunities.”

The CEO of TrustArthur, Dr. Basheer Oshodi, had the chance to speak on the topic of Shariah-compliant stocks.

He contends that without the discussion of Maqasid, Islamic finance cannot be understood. This forms the basis of Islamic finance and directs how to utilise its resources without abusing them.  He believed that the Maqasid allows one to navigate, negotiate, reappraise, and restructure.

According to the CEO, the prohibition on interest is the most significant aspect of Islamic finance. It may manifest as cash received or earned. Islamic law forbids the use of instruments that pay interest.  The prohibition of uncertainty and gambling is another crucial aspect of Islamic finance.

Dr. Basheer listed five strategies for promoting social harmony. such as the welfare of Humans, enhancing prosperity, enhancing faith, enhancing intelligence, and preserving wealth.

In the midst of volatility, he said, Sharia-compliant equities can protect wealth, and equities should always meet wealth protection requirements.

Basheer went on to say that Mudaraba is a type of partnership where the company takes the most risk when investing in local or international stocks.  Mudaraba products are subject to both commercial and return risk.

The Wakala structure permits the cash owner to take a call-up period and delegate management.  In particular in Islamic Finance, “every transaction must have a risk,” he added.

Because ethical investors place a premium on Islamic Finance stocks, according to the scholar, the Nigerian Islamic finance index has outperformed conventional finance in the stock market between 2017 and 2023.

Similarly, for more than ten years, the global Islamic finance index has been a significant component of the Dow Jones Islamic Finance Market World Index. This demonstrates that risk is more manageable in Islamic finance than in conventional finance.

With a master plan to list 50 Shari’ah-compliant products worth N5 trillion by 2025, he was confident that the Securities and Exchange Commission of Nigeria (SEC) is dedicated to growing the Islamic equity market.

The second speaker, Mr. Rehan Ahmed, Co-Founder of HalalStocks, discussed how HalalStocks can use Shariah-compliant principles to unleash the stock market’s potential.

“For decades, Islamic finance has grown quickly, with more than 100 countries now using it, and conventional banking has Islamic finance windows. With 15 to 20% annual growth, it is one of the financial systems with the fastest growth.” He said.

The webinar was moderated by Dr. Abdul-Hameed Jibril Oyekan, Director of Green Circle Ltd.

Visit this link to view the complete video:  https://www.youtube.com/watch?v=J7EaL9a3aGE&t=4793s