Wahed launches Shariah-compliant UCITS ETFs with human rights screening

Islamic fintech and investment manager Wahed has launched a new range of UCITS equity ETFs in Europe that combine traditional Shariah screening with an added ethical review focused on human rights and social impact.

The funds, domiciled in Ireland and approved by the Central Bank of Ireland, are designed to align with Islamic investment principles while introducing a broader values-based assessment. In addition to excluding sectors such as alcohol, gambling and conventional banking, the ETFs apply a discretionary framework evaluating companies on issues including human harm, responsibility and responsiveness to ethical concerns.

Wahed said the approach reflects core Islamic values around dignity, accountability and avoiding harm. The firm draws on external human rights benchmarks such as UN frameworks and international ethical exclusion lists to inform its screening.

Chief executive Mohsin Siddiqui described the additional review as a natural evolution of Shariah investing, saying it brings ethical considerations into sharper focus in modern markets.

The launch marks a new step for the company, which operates across the UK, US, Malaysia and the UAE and manages more than $1 bn in assets globally. Wahed previously introduced Shariah-compliant ETFs listed on Nasdaq and now aims to expand its presence in the European fund market.

The UCITS products will be actively managed, allowing the firm to adjust holdings in response to emerging humanitarian or ethical concerns. Wahed said the strategy is intended to offer investors a more values-driven approach to Islamic finance while broadening access to ethical investment products.

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