Shariah Finance
Would you and your family like to increase your wealth and improve the lives of vulnerable adults and children?
Shariah Finance Isn’t Only for Muslims
Shariah-compliant finance offers an alternative to mainstream banking models, and it is open to anyone who values ethical partnership and transparency.
Some people prefer to invest in ways that create a more direct connection between their money and a tangible outcome — such as a home, a service, or a social impact. They may feel that the dominant UK banking system, with its layers of interest, fees, and financial products, feels disconnected from real value.
Shariah finance provides a different approach. It is rooted in shared risk, real assets, and strict audited ethical practices. For many, that is simply a better fit.
What Is Shariah-Compliant Investment?
Shariah-compliant investment is a type of investing that follows Islamic law and principles.
Its purpose is to build wealth and generate profit. It is not inherently charitable unless an investor personally chooses to donate their gains. However, it is guided by ethical rules that differ from conventional banking in the UK.
One of its central principles is that charging interest on loans, known as RIBA, is not allowed. Any profit earned must be linked to a real product, service, or asset.
Shariah finance also promotes the idea that profit and risk should be shared fairly between those involved. It is based on partnership and mutual accountability. In practice, this means investors and project partners agree to share both the returns and the responsibilities.
This model of investing is ethical by nature. It focuses not just on financial return, but also on the impact it creates for others. However it goes much further than typical ESG (Environmental, Social, and Governance) investment funds offered by mainstream banks, which rely on screening out certain industries. A Shariah-compliant investment must not only be placed in a Halal industry or product, it must be actively managed according to Islamic principles, and is subject to regular review and audit; it is about how your investment is managed not only what it is invested in.
For individual investors, there are two options available. These are outlined in the section titled Outline of Investment Structures further down.
Key Principles of Shariah Finance
The investment must be backed by real assets
All property involved must be halal, meaning lawful in use and free from haram elements such as alcohol or gambling
No interest-based lending (RIBA) is allowed
The project must be managed with Islamic principles in mind at every stage
All properties and agreements are subject to due diligence and review to ensure compliance
Why It Matters to Goldfinch
We believe Shariah finance, when applied with care, is an ethical and effective alternative to mainstream investment. It reflects values that align closely with our mission.
Goldfinch exists to create better investments, with better outcomes for everyone involved. That includes people seeking values-led alternatives, whether driven by faith or by personal principle.
We know that some Muslim investors are unsure where to place their money. They may avoid growing their savings in any way at all, holding onto cash in a way that protects their beliefs but leaves their savings exposed to inflation. We believe there is a better way.
We also believe we are one society, shaped by different cultures but facing many of the same challenges. Homelessness, domestic abuse, and social inequality affect us all. Goldfinch is proud to offer an inclusive investment model that helps tackle these issues and respects the beliefs of everyone who joins us.
We welcome those who wish to build wealth for themselves and their families in a way that avoids RIBA and stays within the boundaries of Shariah law.
How Goldfinch Aligns with Shariah Principles
At Goldfinch, we believe in:
Matching ethical purpose with ethical practice
Building close, respectful relationships with our investors and partners
Fair profit and fair distribution of wealth
Working with people who value integrity and positive change
Avoiding institutions making profit from interest-bearing loans
Outline of Investment Structures
There are two Shariah-compliant investment models available for Goldfinch Property Investments projects. Our Certified Shariah Advisor will explore both options with you and help determine the structure that best fits your values and goals. We can work with you as an individual educated investor or you can contribute to a Sukuk (a group of investors) which then will invest with us. If you want to invest as part of a Sukuk please ask for more information. You can of course invest as a household with several adults also, hence increase your overall investment value and profit.
Musharakah (Joint Venture with Sale)
This is a partnership between you and Goldfinch Property Investments. Profits are shared according to the capital invested and the work carried out to increase the value of the property.
When the asset is ready to be sold, the wealth and profit are realised, and the joint venture is concluded.
For some projects, this commitment can be as short as nine months. This allows time for acquisition, improvement works, a lease agreement to be signed, and the sale to be completed.
Mudarabah (Profit-Sharing Arrangement)
In this model, you provide the capital as the Rab al-Mal (capital investor), while Goldfinch acts as the Mudarib (investment manager).
We take responsibility for improving the property and managing the project, with rental income generated through a lease agreement (Ijara) with a care provider who supports the tenants. The care provider is audited to ensure Shariah compliance.
Profits from the ongoing rental income are shared as agreed in the joint venture legal agreement. At the beginning of the project, we also agree how proceeds will be divided when the property is eventually sold. This typically happens at the end of the lease, unless all parties agree to renew it.
Special Purpose Vehicle (SPV)
For both Musharakah and Mudarabah, a new company is formed for each individual project. This is known as a Special Purpose Vehicle and is created solely to manage that project.
The SPV allows us to ensure that the structure and operations of the investment remain fully compliant with Shariah finance principles. Our Certified Shariah Advisor will ensure the project is set up in a Shariah compliant way and then the Certified auditor will ensure compliance throughout the term of the project.
Musharakah:
(Joint-venture with subsequent sale)
Mudarabah:
(Profit-sharing)
End of Investment and How We Add Value
At the conclusion of either a Musharakah or Mudarabah arrangement, profits are shared as agreed, and the partnership is brought to a close. In some cases, all parties may agree to renew or extend the arrangement if it continues to serve the intended purpose.
The value of the property is enhanced through thoughtful renovation, effective management, and securing a long-term lease with a supported housing provider. This not only increases financial return but also ensures the property delivers lasting social benefit.
Throughout the project, all activities — from acquisition and design to lease and sale — are carried out in a manner consistent with Shariah principles. Every step is guided by the Shariah Advisor at set-up, and then Auditor to ensure compliance, fairness, and shared purpose.
Transparency and Partnership
We have spent considerable time working with Islamic Scholars and Certified Product Managers and Auditors to fully understand the principles of Shariah law and the options available to investors.
As with everything we do, we are professional, thoughtful, and committed to earning and keeping your trust. Through careful research and long-term relationship-building, we are confident in our ability to present you with suitable, ethical investment proposals.
All Shariah-compliant agreements are dealt with by a Shariah Scholar or Shariah Compliant Advisor, and then reviewed and certified by an independent, qualified Shariah auditor through the lifetime of the project.
Shariah Finance FAQ’s
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In terms of individual households we will only work with ‘Educated Investors’ defined as one of three of the below:
High Net Worth: Annual total household income of at least £100,000 in last financial year OR householdnet assets of £250,000or more (net assets do not include primary residence or pension).
Self-Certified Sophisticated Investor: the following applies if at least one household member:
Worked in private equity or in the provision of finance for SMEs
Been a director of a company with an annual turnover of at least £500,000
Made 2 or more investments in an unlisted company
Been a member of a network or syndicate of business angels for more than 6 months
Sophisticated Investor: received a certificate from an authorised firm in the last 3 years confirming they understand the risks involved with illiquid securities.
We also work with Sukuks (a group of investors), who will have their own regulations. Please ask for more information.
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Your investment will be regulated under Shariah Law, and our Shariah compliant advisor will be involved setting up the contract and an Auditor will be retained to ensure it remains compliant throughout the investment.
A lawyer will ensure the joint venture partnership is legally sound under British Law and you are financially protected.
Private investing is not regulated by the FCA (Financial Conduct Authority) and it is advised you always seek advice before committing.
By British Law the Directors of McCracken Meek Property Developments Ltd (trading name Goldfinch Investments) are personally liable to pay you back for any financial loss in a property project, from any of our personal funds or assets; so you are legally protected by British law.
We are a member of the Institute of Business Ethics and our Code can be found under the Resources section.
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£40,000 is our minimum investment amount directly as an individual or household. If you want to be involved but do not have this amount as a household we encourage you to call us and talk about the opportunities to invest with us through other means.