The global asset management industry is undergoing a digital transformation, and the Islamic finance sector is no exception. As more investors seek ethical and Shariah compliant investment opportunities, digitalization is becoming an essential tool for Islamic asset managers to reach a broader audience.
Hejaz Financial Services has been a pioneer in this space, leveraging technology to enhance its Islamic asset management offerings in Australia. As the company looks to expand into international markets such as the UK, Europe and the MENA region, its digital strategy will be a critical driver of growth.
Growth of Islamic asset management in Australia
Australia’s asset management industry has seen a growing demand for ethical and Shariah compliant investments, driven by both Muslim and non-Muslim investors.
Hejaz Financial Services has positioned itself as a leader in this space, offering a range of investment products that adhere to Islamic principles. These include superannuation and pension funds, managed funds – both wholesale and retail.
Other offerings include ETFs (exchange traded funds) and portfolio management services that avoid investments in industries prohibited under Shariah law – such as alcohol, gambling and interest-based lending.
The digitization of these investment services has been a key factor in Hejaz’s success. By offering online platforms for investors to manage their portfolios, track performance and access financial advice, Hejaz has made Shariah compliant investing more accessible than ever before.
The Halal Money App, for example, allows users to invest in a wide range of assets – including stocks, ETFs and managed funds – all while ensuring that their investments remain compliant with Islamic principles.
Hejaz’s digital strategy for asset management
Hejaz’s approach to digitizing asset management is centered on customer-centric innovation. The company recognises that modern investors, particularly millennials and Gen Z, expect seamless digital experiences when managing their finances.
As such, Hejaz has invested in building user-friendly platforms that offer real-time insights, portfolio customisation and automated financial advice through AI-driven robo-advisory services.
These digital tools not only enhance the customer experience but also improve operational efficiency. By automating routine tasks such as portfolio rebalancing and tax optimisation, Hejaz is able to offer competitive pricing while maintaining high standards of service.
Additionally, the use of AI and machine learning allows the company to tailor investment recommendations to individual preferences, ensuring that each investor’s portfolio aligns with their financial goals and risk tolerance.
Opportunities in the UK, Europe and MENA
The UK, Europe and the MENA region represent significant opportunities for Hejaz’s asset management business.
The UK, in particular, has a well-established Islamic finance sector and a regulatory environment that is conducive to innovation. London’s status as a global financial hub, combined with its diverse population, makes it an ideal market for Hejaz to introduce its digital asset management services.
In Europe, countries such as France and Germany have large Muslim populations that are underserved by the traditional financial sector. The demand for ethical and Shariah compliant investment products is growing, and Hejaz’s digital platforms can help bridge the gap by offering accessible, transparent investment solutions.
The MENA region, home to some of the largest Islamic finance markets in the world, also presents a significant growth opportunity. Countries such as the UAE, Saudi Arabia, and Bahrain have been at the forefront of digital banking and fintech innovation, and Hejaz can leverage its experience in digital asset management to tap into these markets.
By partnering with local financial institutions and regulatory bodies, Hejaz can ensure that its products meet regional standards while also offering a global perspective on Islamic investing.
Conclusion
The digitization of Islamic asset management is reshaping the investment landscape, and Hejaz Financial Services is at the forefront of this transformation.
By leveraging technology to offer Shariah compliant investment solutions, Hejaz has been able to provide accessible, transparent and ethical investment options to a growing number of investors.
As the company looks to expand into the UK, Europe and MENA regions, its digital strategy will be key to its continued success. The future of Islamic asset management is undoubtedly digital, and Hejaz is well-positioned to lead the way in this evolving industry.
Muzzammil Dhedhy is Co-Founder, Director, Chief Product & Compliance Officer of Hejaz Group