Wahed’s , a leading global Islamic fintech and investment platform, has launched a pair of UCITS-compliant exchange-traded funds (ETFs) that combine traditional Shariah compliance with an enhanced humanitarian and human-rights screening framework, a first of its kind in the European ETF market.
The two flagship funds, Wahed S&P 500 Shariah UCITS ETF and the Wahed Dow Jones Islamic World UCITS ETF were listed on the London Stock Exchange and are domiciled in Ireland. They were launched via Waystone’s white-label ETF platform, which provides regulatory, governance, and operational support to emerging ETF strategies.
A New Layer of Values-Based Screening
While Shariah-compliant ETFs are already established vehicles designed to exclude sectors such as alcohol, gambling, and conventional banking, Wahed’s UCITS ETFs go further by integrating an additional Ethical and Human Rights Review. This discretionary overlay evaluates potential holdings across three dimensions:
- Salience – the severity of potential human harm
- Responsibility – the company’s role in enabling or profiting from that harm
- Responsiveness – the company’s willingness to address or mitigate harm
For this evaluation, Wahed references internationally recognised frameworks, including the UN Office of the High Commissioner for Human Rights (OHCHR), the AFSC Investigate database, the UFLPA Entity List, and the KLP Council on Ethics Exclusion List.
According to Wahed’s CEO Mohsin Siddiqui, this extended screening framework is a natural outgrowth of Islamic ethical principles. “Principles like responsibility, the protection of human dignity, and the pursuit of good are all grounded in the very spirit of Shariah,” he said. “Our ethical screening is rooted in the same values that inform Shariah: responsibility, compassion, and a duty to avoid harm.”
Market Positioning and Product Structure
By launching UCITS-structured ETFs, Wahed brings institutional-grade standards, including high regulatory oversight and investor protections to the evolving intersection of Islamic finance and values-based investing. UCITS (Undertakings for Collective Investment in Transferable Securities) structures are widely recognised for rigorous governance, cross-border eligibility, and suitability for retail and institutional investors across multiple jurisdictions.
The funds aim to provide cost-efficient, diversified exposure to global equities that meet both Shariah and ethical screens, serving as building blocks for core portfolios. Although detailed expense ratios and index methodologies have yet to be broadly published, these vehicles signal a shift toward greater choice and sophistication in ethical ETF product sets within Europe.
A Growing Faith-Based Investing Trend
Demand for faith-aligned and values-oriented investment products is rising. According to industry reporting, Islamic fund assets in EMEA have nearly doubled in recent years, with ETF-equivalent assets now exceeding USD 3 billion. Until recently, most Islamic ETFs listed in Europe were issued by large global managers rather than firms exclusively focused on Islamic finance; Wahed’s entry represents a new phase in product development.
Wahed itself has a track record of pioneering Shariah-compliant ETFs in the U.S. and UK markets, and its global presence spans more than ten countries with over 450,000 clients and more than USD 1 billion in assets under management. This combination of fintech scale and values-based screening positions the firm uniquely within both the Islamic and ethical investing landscapes.
Implications for Regional Investors
For investors in the GCC and broader Middle East, Wahed’s launch underscores several key trends:
- Growing demand for Shariah-compliant global equity access
- A broadening of ethical considerations beyond traditional screens
- Increasing availability of UCITS-regulated vehicles that can serve as core portfolio allocations
As regional ETF ecosystems deepen, both in terms of products and investor sophistication; Solutions that marry faith alignment with broader value frameworks are likely to attract attention from family offices, sovereign investors, and faith-based allocators seeking transparent, regulated exposures that resonate with both religious and ethical priorities.
