The global landscape of Islamic finance reveals significant disparities in the availability and maturity of Shariah compliant products and services.
While certain regions boast developed Islamic financial ecosystems, many Western countries with substantial Muslim populations remain underserviced.
The Hejaz Group has strategically identified and capitalized on these gaps, implementing a meticulously planned expansion strategy that combines market understanding with operational efficiency.
Hejaz’s expansion model is fundamentally driven by demand. Having successfully “revolutionized” the Islamic finance landscape in Australia by offering a holistic suite of solutions – from home and automotive finance to SME and commercial property financing as well as investment products like ETFs and pensions – the firm received strong demand from the UK.
This led to their strategic entry into the UK market, which they perceive as “very, very large and is a very underserviced market” for Islamic pensions, asset management, ETFs and particularly financing.
‘Exact motivations’, not ‘ivory tower’ approaches
The market analysis conducted by Hejaz is deeply grassroots driven. We spend time understanding the exact sort of motivations, the demands of the community, rejecting the “ivory tower” approach of dictating what customers need.
This direct engagement revealed critical pain points in the UK, such as expensive home financing (8-10% higher than conventional alternatives) and extremely laborious processes, with approval times stretching to six months or even 12-month waiting lists for property purchases.
This stark contrast to Australia, where Hejaz has streamlined home finance applications to a mere 10 days, sometimes one week, highlights a significant market inefficiency that Hejaz is uniquely positioned to address.
Hejaz’s entry into the UK is a phased approach to ensure optimal resource management and smooth integration. The initial focus is on asset management and pension offerings, including the listing of their ETFs on Euronext Dublin and the London Stock Exchange within weeks.
This will be swiftly followed by the release of their Halal Money fintech app into the UK market in Q3, ensuring digital accessibility for transactional and investment needs.
The second phase, planned for Q4 this year or Q1 next year, will introduce the full range of financing solutions – home, business and car finance – leveraging their proven ability to streamline processes. This staggered release prevents overextension and allows each product to consolidate and stabilize before the next launch.
Hejaz: A compelling case study in scaling ethical finance
Operationally, Hejaz has established a robust global infrastructure to support its multinational ambitions. Its Bahrain office, with a substantial 110-person headcount, serves not just as a GCC regional headquarters but also as a vital support center for UK and European operations due to favorable time zone overlaps and a deep talent pool in Islamic finance, asset management and fintech.
I, myself, have relocated to Bahrain, recognizing the need to be “close to the action” for product development and launch across these diverse jurisdictions. This strategic decentralization, coupled with a group headcount of over 200, underscores their commitment to efficient execution.
Beyond the UK, the enormous opportunity in broader Europe – particularly Germany, France and Spain with their large Muslim populations – is a key focus, facilitated by their Irish-domiciled funds which allow for passporting across the EU.
The GCC region also represents a significant growth market, with Hejaz already having applied for asset management licensing in Bahrain and anticipating substantial demand for their services.
Hejaz’s strategy is not just about entering markets but about establishing a comprehensive, competitive and culturally attuned Islamic financial ecosystem wherever there is unmet demand, setting ambitious targets like “hundreds of millions in AUM in the first year” in the UK pensions segment.
This systematic and demand-driven global expansion makes Hejaz a compelling case study in scaling ethical finance.
Muzzammil Dhedhy is co-founder and executive director of Hejaz Group, Australia
