KUALA LUMPUR: Although Islamic investments have become more popular in recent years, there is still a very limited selection of Shariah-compliant global derivatives products available to local investors.
Addressing this need is UOB Kay Hian Securities (M) Sdn Bhd who recently unveiled a curated list of global commodity futures that align with Shariah principles. The launch was officiated by CEO David Lim Meng Hoe and Professor Dato’ Dr. Aznan Hasan, Shariah Advisor for UOB Kay Hian.
Professor Dato’ Dr. Aznan’s expertise and guidance have been instrumental in ensuring the compliance of the selected global derivatives with Islamic principles.
“This marks a significant milestone in our commitment to supporting ethical investing in Malaysia. By providing access to these markets, we empower retail traders to achieve their financial goals while remaining steadfast with their religious values,” David Lim said in a statement at the product launch of its global Shariah derivatives.
“I am pleased to see more variety of Shariah-compliant commodity futures traded on global exchanges such as Bursa Malaysia Derivatives (BMD), New York Mercantile Exchange (NYMEX), Chicago Board of Trade (CBOT), and Singapore Stock Exchange (SGX) being accessible to local retailers,” said David Lim.
“This provides investors with greater flexibility and exposure to various asset classes meticulously reviewed to adhere to Islamic principles, ensuring that they are permissible under Shariah law. By investing in these products, investors can contribute to a more just and equitable financial landscape,” he added.
The launch included a brief presentation on the key characteristics of Shariah derivatives by Professor Dato’ Dr. Aznan. This was followed by a panel discussion themed “Shariah Derivatives and Personal Financial Planning” featuring Shariah market experts Ustaz Arham Merican, Managing Director, Sharlife Sdn Bhd and Alwi Adam, Principal of SmartSaham and EZAZ Wealth Group.
The panel discussion offered insights into the practical applications of Shariah derivatives including opportunities, strategies, advantages, and considerations for incorporating local and international derivatives products into existing portfolios. UOB Kay Hian futures broker representative Zuber Al-Awwam moderated the discussion.
