Hejaz Group will soon be listing, on the Irish and London exchanges, a total of five investment fund products with transferable securities to mark the European debut of the Australian Shariah finance specialist.
The five UCITS (undertakings for collective investment in transferable securities) are products that will help Hejaz extend its reach and brand across Europe, Co-Founder and Executive Director Muzzammil Dhedhy shared with IFN Investor.
“We have been approved by the Central Bank of Ireland to have our UCITS funds registered and set up over there; we’ve gone through the registration process, they’ve all been endorsed through the final steps to be listed on Euronext Dublin as a primary listing.”
A key part of Europe’s Shariah landscape involves UCITS, which benefits from fund passporting for cross-border distribution. Under this arrangement, fund managers can base their Islamic funds in one European capital, say Dublin or Luxembourg, and distribute them widely across the region.
Boots on the ground in UK
As Hejaz already offers, from its Australian home base, multiple asset classes from equities to property and Sukuk, Muzzammil said it would be appropriate to spread its brand name and diverse offerings across a wider European customer base.
“Our product strategy has always been demand-driven, and the demand for high-quality, authentically Shariah compliant investments in the UK and Europe is immense and unmet, which creates the perfect storm for us.”
Muzzammil said the five fund products will see secondary flotation on the London Stock Exchange – which will also address a particular gap in the UK market for Islamic pension products.
He highlighted Hejaz’s competitive advantages, which includes a fintech app that has revolutionized Islamic finance accessibility, a US$3 billion global portfolio and a holistic approach that caters to both individuals and institutional investors.
That’s the success the Australian brand wishes to replicate in Ireland, the UK and broader Europe, Muzzammil said.
Little or big money, UCITS works for both
UCITS is a highly recognized and regulated investment fund product that has played a pivotal role in the European asset management industry since its inception in 1985. It came into existence after a UCITS Directive was adopted to create a harmonized market for collective investment schemes across the EU.
The primary goal was to allow investment funds authorized in one EU member state to be marketed and sold in any other member state without requiring additional authorization, a mechanism known as the ‘UCITS passport’. This innovation significantly boosted cross-border fund distribution and asset manager competitiveness.
Over the decades, the UCITS framework has undergone several revisions — UCITS I, III, IV, V and so on – to adapt to market shifts, improve investor protection and expand the range of eligible assets.
UCITS funds are primarily designed for retail investors but are also widely adopted by institutional investors. This aligns perfectly with Hejaz’s stated aim to cater to a diverse clientele, from “ultra-high-net-worth family offices, institutional, all the way to your first time investor coming in with maybe a few hundred or a few thousand dollars.” The UCITS structure provides the necessary regulatory comfort for this broad spectrum of investors.
As Muzzammil highlights, the UK and broader European markets are “underserviced” when it comes to comprehensive, competitive and easily accessible Islamic financial solutions. By entering with UCITS compliant Shariah exchange-traded funds across various asset classes – equities, property, Sukuk – Hejaz is directly addressing this demand within a familiar and trusted regulatory wrapper for European investors.
