Source: Halal Times

Kawaguchiko, Japan – Dubai’s financial sector witnessed a significant development this week as ASB Capital partnered with investment giant State Street Global Advisors (SSGA) to launch an innovative Shari’a Global Equity Fund. The DIFC-domiciled fund offers investors ethical investment opportunities aligned with Islamic principles while accessing diverse global markets.

Strategic Partnership Combines Regional and Global Expertise

The collaboration unites ASB Capital’s deep regional market understanding with SSGA’s extensive global investment management experience. Based in Dubai, ASB Capital brings substantial regional expertise to the partnership, having launched earlier this year with an impressive $4.5 billion in assets under management.

“This fund reflects our commitment to innovation and forming strategic partnerships with renowned global asset managers,” said Hichem Djouhri, Senior Executive Officer at ASB Capital. “Our collaboration with State Street Global Advisors unlocks access to global markets for regional investors while advancing the growth of Shari’a-compliant ethical investment solutions.”

SSGA’s Active Fundamental Equity team, which currently manages approximately $18 billion in assets, will be responsible for the fund’s day-to-day management. The team employs a research-driven approach refined over three decades, utilizing SSGA’s proprietary Confidence Quotient Framework to identify high-quality companies with sustainable growth prospects.

Emmanuel Laurina, Head of Middle East & Africa at State Street Global Advisors, emphasized the complementary nature of the partnership: “By working with ASB Capital, we combine their deep regional insight with our global capabilities, providing investors with access to a curated portfolio of high-conviction and high-quality global equities.”

Rising Demand for Ethical Investment Solutions

The fund’s launch comes amid remarkable growth in the Islamic finance sector, with projections indicating the global Shari’a-compliant finance industry will exceed $3.5 trillion in assets by the end of 2025. Some industry experts suggest even more ambitious growth, with potential to reach $5 trillion shortly thereafter.

This expansion reflects several converging trends:

• Growing global Muslim population seeking faith-aligned investment options
• Increasing awareness of Islamic financial principles
• Rising interest in ethical and socially responsible investing beyond the Muslim community

The UAE’s strategic position as a leading Middle Eastern financial hub, combined with the robust regulatory framework provided by the Dubai Financial Services Authority (DFSA), creates an ideal foundation for the fund’s operations.

Investment Approach and Opportunities

The Shari’a Global Equity Fund aims to provide carefully selected exposure to publicly listed companies across global markets that meet stringent Shari’a compliance standards. This approach offers investors the opportunity to diversify their portfolios across various sectors and geographical regions while adhering to ethical principles.

Michael Solecki, Chief Investment Officer for Active Fundamental Equities at SSGA, highlighted the investment philosophy guiding the fund: “We’re bringing our unique focus on quality, durable growth, and reasonable valuation to ASB Capital’s platform.”

For institutional investors, family offices, and high-net-worth individuals throughout the UAE and wider MENA region, the fund represents an opportunity to align investment strategies with ethical and religious values without compromising potential returns.

Building on Strong Foundations

ASB Capital, with roots in Al Salam Bank’s legacy, offers comprehensive services across public and private markets, investment banking, and placement services. The firm’s focus on the MENA region, combined with its strategic partnerships with global asset managers, positions it at the intersection of regional opportunities and global markets.

State Street Global Advisors brings over four decades of investment experience to the partnership, with approximately $4.73 trillion in assets under management. As pioneers in index and ETF investing, SSGA has consistently demonstrated adaptability to evolving market dynamics.

This collaboration between ASB Capital and SSGA represents a significant advancement for Islamic finance in the region, offering investors a sophisticated vehicle to participate in global equity markets while maintaining alignment with their ethical principles.

Original Articles:

halaltimes.com. (n.d.). ASB & State Street Launch Shari’a Global Equity Fund for UAE Investors. Retrieved April 16, 2025, from https://www.halaltimes.com/asb-state-street-launch-sharia-global-equity-fund-for-uae-investors/