A Beginner’s Guide to Shariah Finance

Shariah-compliant finance is an ethical, asset-backed approach to investment that is still not widely understood in the UK. At Goldfinch, we’ve been exploring its potential to create inclusive opportunities that align with both values and returns. This blog offers an introduction to the principles of Shariah finance — and why they matter for investors of all backgrounds.

Shariah finance is guided by principles that prioritise fairness, shared risk, and tangible assets. Unlike conventional lending, it prohibits earning interest for its own sake. Instead, wealth is created through real-world activity — for example, generating income from a property and sharing that income between partners.

The standards are high. Ethical criteria are audited across the whole institution, not just a single product. Businesses linked to gambling, alcohol, or other non-halal sectors are excluded. The effect is clarity and consistency: investors know their money is aligned with ethical principles at every level.

This approach has clear appeal for Muslim investors, but its potential goes far wider. Many non-Muslim investors are drawn to the emphasis on transparency, accountability, and fairness. In fact, Shariah finance can be seen as a model of ethical investment that offers lessons for the entire sector.

For Goldfinch, it’s a way of making our investor opportunities more inclusive, while staying true to our core: secure, asset-backed investments with clear returns.

We are committed to offering investment opportunities that are both ethical and secure. If you’d like to learn more about Shariah-compliant models and how they sit alongside our fixed-return offers, download our Investor Pack or get in touch with the team.