UAE Investment Fuels Growth in Australia’s Islamic Finance Market
Source: Halal Times
Kawaguchiko, Japan – Australia’s Islamic finance sector has received a substantial boost with Hejaz Group securing €100 million (approximately AUD 185 million) in funding from a private wealth group based in the United Arab Emirates. This significant capital injection positions the company to expand its Sharia-compliant financial services across the Australian market, addressing growing demand from the country’s Muslim population.
Meeting Ethical Financial Needs
For Australia’s Muslim community—which grew to 814,000 people or 3.2% of the population according to the 2021 Census—access to financial products that align with Islamic principles represents more than convenience; it’s a fundamental religious requirement. Islamic finance adheres to Sharia law, which prohibits interest (riba), mandates ethical investments, and emphasizes transparency and risk-sharing in all transactions.
“The demand for Sharia-compliant financial products in Australia has witnessed a substantial surge in recent years, primarily driven by a growing and increasingly discerning population actively seeking viable and ethical alternatives to conventional finance,” explained Hakan Ozyon, Chief Executive Officer of Hejaz Group.
Expanding Financial Services
Hejaz Group has established itself as a pioneer in Australian Islamic finance, currently serving approximately 30,000 customers and managing over AUD 3 billion in assets. The company has previously focused on providing Sharia-compliant pension funds, ethically screened exchange-traded funds (ETFs), permissible property investments, and Islamic-guided personal asset management.
With this new funding, Hejaz plans to significantly expand its offerings into underserved areas of the market, including:
- Property finance, enabling Muslims to pursue homeownership while adhering to religious principles
- Auto finance structured without interest-based transactions
- Small and medium enterprise (SME) financing for Muslim entrepreneurs
- Commercial finance for larger business ventures
- Development finance for infrastructure and real estate projects
“This crucial funding facility will enable us to effectively meet this escalating demand at scale, providing vital support to Australian home buyers seeking Sharia-compliant mortgages, empowering business owners with ethical financing options for growth, and facilitating developers in undertaking projects with responsible financial structures,” Ozyon stated.
Investment Opportunities
Hejaz Group has already listed five Sharia-compliant investment products on the Australian Securities Exchange (ASX), making ethical investment options accessible to both Muslim and non-Muslim investors:
- Hejaz Sukuk Active ETF (ASX: SKUK) – offering exposure to Islamic bonds
- Hejaz Property Fund (ASX: HJZP) – focusing on Sharia-compliant property ventures
- Hejaz Equities Fund (ASX: ISLM) – investing in ethically screened Australian equities
- Hejaz High Income Active ETF (ASX: HJHI)
- Hejaz High Innovation Active ETF (ASX: HHIF)
Global Context and Economic Benefits
The growth in Australian Islamic finance mirrors a worldwide trend, with the global Islamic finance industry expanding rapidly and managing assets worth trillions of US dollars. The appeal of Islamic finance extends beyond religious adherence, attracting those interested in ethical investment practices that avoid harmful industries and excessive speculation.
For Australia, developing a robust Islamic finance sector offers significant economic benefits. It unlocks previously untapped economic potential within Muslim communities, encourages entrepreneurship, and attracts international investment. The UAE funding for Hejaz demonstrates growing international recognition of Australia’s Islamic finance potential.
Future Outlook
As demand for Sharia-compliant financial products continues to rise, Australia’s Islamic finance sector is expected to evolve further. Industry observers anticipate more dedicated Islamic banking institutions, expanded Islamic insurance (takaful) products, and further development of Islamic capital markets within Australia.
The substantial funding secured by Hejaz Group signals the increasing maturity of Australia’s Islamic finance ecosystem and represents an important step toward greater financial inclusion and diversity in the nation’s financial landscape. By addressing this specialized market, Australia is creating pathways for its Muslim citizens to fully participate in the economy while adhering to their religious principles.
Original Articles:
halaltimes.com. (n.d.). Hejaz UAE Receives €100M Funding for Australian Islamic Finance Growth. Retrieved April 10, 2025, from https://www.halaltimes.com/hejaz-uae-receives-e100m-funding-for-australian-islamic-finance-growth/
