Islamic finance places emphasis on protecting people from predatory financial practices and treating the world around us with respect. And while ethical investments don’t take interest into consideration, they aim to benefit people, animals, and the environment. So why is it so hard to marry the two?

One word - capitalism. Not to be dramatic, but many of the modern global crises that are unraveling can be attributed directly to it. So when a Muslim investor is looking to grow their wealth while also being considerate of our religious and moral obligations in a system designed to exploit, things aren’t so straightforward. Most shariah-compliance stock screeners focus on a few key elements:

Don’t get me wrong - these screeners are still incredible resources. But they miss an important angle that many investors are looking for. And the fact of the matter is - if a truly ethical screener were added to stocks and funds considered halal, there would likely be nothing left to invest in. Depressing, right?

The system is designed this way. It’s the reason we find it so difficult to boycott companies that are involved in war crimes. They are enmeshed in the fabric of our society so tightly that it is impossible to exist here without relying on them for some pivotal aspect of our lives.

But this isn’t the end of the story - it’s the beginning. As shareholders, we have a right to demand ethical investment opportunities. I still believe in the importance of calling out companies for their concerning business practices and moral failings. With increased interest in ethical investments, we’ll reach a point where companies finally start detaching from the war machine. Ultimately, this won’t happen until they start to feel it in their bottom line. The road is long, but we’ve already seen companies quietly cut ties with Israel after the public floggings finally hit them where it hurt.

But I also want us to be careful about misplacing blame. I recently shared the announcement of a halal ETF layered with an additional ethical screener, and people were quick to point out the ways that it didn’t meet their expectations. Ethical and halal investing isn’t perfect, but we need to have constructive conversations about how we can get closer to our ideal state rather than shutting down every attempt that moves the needle.

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