Wahed Invest Launches in Malaysia

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Wahed offers Malaysians a smarter way to invest by providing access to a diversified, unbiased, Shariah-compliant portfolio

  • Malaysia office to serve as a regional hub for Wahed Invest’s Asia Pacific operations
  • Wahed supports Malaysia’s vision of shared prosperity and inclusive economic growth by leveraging technology that is focused on the Islamic Digital Economy

Wahed Invest announced the launch of Malaysia’s first Islamic digital investment platform. Wahed’s digital investment management services allow investors access to a Shariah compliant portfolio, that is transparent, impartial and aims to empower Malaysians at large to take charge of their financial well-being.

First launched in 2017, US based Wahed Invest, expanded into the UK market in 2018 and plans to roll out its digital investment management services across the Southeast Asia region from its regional base here in Malaysia. Available in over 130 countries, Wahed is designed to cater to both financially savvy investors as well as those with little financial knowledge, making diversified investments accessible. Coupled with low starting investment of RM 100, low fees, and no lock-in period, Wahed hopes to remove the barriers to investment management and portfolios that were traditionally reserved for high net worth investors.

“Islamic finance is one of the fastest-growing sectors in the world, and Wahed has enabled the global Muslim community to participate in global financial markets by making investing both accessible and ethically compliant. As one of the most developed Islamic capital markets, Malaysia is uniquely positioned to meet the increasingly sophisticated and demanding needs of Southeast Asian investors and help create opportunities in Islamic finance. By providing a new and smarter way of investment that is shariah compliant, our investors have access to a digital investment manager that has lower fees and lower account minimums,” said Junaid Wahedna, Founder and Chief Executive Officer of Wahed Inc.

While the World Bank Report states that Malaysia has achieved one of the highest levels of financial inclusion among Southeast Asia countries, Malaysians’ still lag behind when it comes to financial literacy and knowledge. A recent survey conducted by the Credit Counselling and Debt Management Agency (AKPK) reported that one out of three Malaysians are not comfortable with their financial knowledge, while half of the population (52%) say they face difficulties raising even RM1,000 for emergencies. Over half of Malaysians (53%) believe that wealth management is the key to achieving social mobility. However, most Malaysians feel their inadequate financial knowledge has hindered them from efficient wealth management.

Demonstrating the Wahed platform at the launch, Syakir Hashim, Director and Chief Executive Officer for APAC of Wahed Inc shared, “Amid Malaysia’s recent push towards shared prosperity through a more inclusive economy that is rooted in technology and innovation, we at Wahed are empowering Malaysians with better access to a secure financial future. We recognize Malaysia as one of our key markets and a country that is on track to becoming a leader in Islamic Digital Economy backed by an ecosystem that is fast-growing. Malaysia will be playing a key role in driving our growth in the Asia Pacific as the Regional Hub for our operations. Everyone has different financial goals and aspirations, but for an inexperienced or first time investor, the lack of proper financial education and opportunities, coupled with daunting and sometimes difficult to understand financial jargon is enough to deter and prevent them from investing and taking charge of their financial well-being.”

“Recent studies have showcased that one out of every five Malaysians do not manage to save any money in the span of six months[1]. Through Wahed, we encourage our investors to take charge of their financial well-being by providing them a smarter investment tool that is in line with their faith. We aim to ensure that all Muslims have access to an efficient Shari’ah compliant investment portfolio, regardless of their economic status or geographic location,” highlighted Syakir Hashim.

Wahed’s current portfolio allocation options include investments into US stocks, Malaysian stocks, sukuk (Islamic bonds), and gold. In order to ensure all returns are halal, Wahed has a full-time Shariah Advisory Board, which undertakes a rigorous screening process and produces annual purification reports (Zakat). As a result, Muslim and non-Muslim investors alike are now able to invest worry-free into portfolios that are ethically sound.

Wahed Inc’s subsidiaries are regulated by some of the world’s most respected jurisdictions including Securities Exchange Commission (SEC) in the US, the Financial Conduct Authority (FCA) in the UK, Saudi Arabia’s Capital Market Authority (CMA) and the Central Bank of Bahrain (CBB).

Once signed-up, users can securely create an investment account within minutes. Wahed will automatically suggest a portfolio for each user based on how they answer about themselves; taking into account the individual’s financial situation, attitude towards risks, investment goals and other criteria. The portfolio models are overseen by Wahed’s fund management professionals. Users can begin investing with as little as RM100 while paying a fraction of traditional management fees. Wahed ensures that investors always have a diversified portfolio, regardless of their account size, thus making investing efficient for investors from all walks of life.

Wahed Invest Receives Islamic Digital Investment Management License

Wahed Invest has successfully obtained their regulatory license from the Securities Commission (SC) Malaysia to offer the first islamic digital investment management services in Malaysia. The Islamic Digital Investment Management license granted by the SC will enable Malaysians to invest worry-free in shariah-compliant and ethical portfolios.