In Shari’a We Trust

There are several different schools of Islamic theology and jurisprudence – with the most significant two being Sunni and Shia – and within each of these are many different sub-schools.

In relation to inheritance, the Shari'a system encourages an outright distribution of wealth to the family in fixed proportions and there are slight variations between the rules of each school. In any particular case, clients should seek advice from their own Imam (an authority on Islam) or other suitable experts, as the creation of trusts within Shari'a is fraught with difficulties.

The Shari'a investment rules create the distinction between investments that are halal (Shari'a-compliant) and those that are haram (non-compliant). The most relevant haram investment is Riba or usury – the practice of charging interest on loans. This is a bar on any investment that produces a predetermined fixed return – the profit element is then Haram. Therefore, there must be no guaranteed return,