Wednesday, 8 October 2025 — The 27four Global Shariah Equity AMETF is offering diversified exposure to global equities that comply with Islamic finance principles. Shariah investments exclude conventional banking, alcohol, gambling, and pork-related sectors, investing only in companies listed on exchanges recognised by the World Federation of Exchanges. 

In welcoming the new listing, Adèle Hattingh, Business Development and Exchange Traded Products Manager at the JSE, commented, “The addition of the 27four Global Shariah Equity AMETF highlights our commitment to inclusion and choice in the financial marketplace. The global growth of Shariah-compliant equities demonstrates an alignment between responsible investment principles and investor priorities.” 

Islamic banking operates on principles that prohibit interest (riba), excessive uncertainty (gharar), and unethical investments, offering an alternative financial model rooted in equity, transparency, and shared risk. Instead of charging interest, Islamic banks structure transactions around profit-and-loss sharing arrangements like Mudarabah (investment partnerships) and Musharakah (joint ventures), where returns are tied to business performance. Financing is asset-backed, using contracts like Murabaha (cost-plus sale) or Ijara (leasing), ensuring money is tied to tangible economic activity.

Hamzah Latha, Investment Associate at 27four, added, “This fund allows investors to access the world’s leading Shariah-compliant companies while staying true to ethical convictions and financial objectives. We believe it answers the needs of a modern investor base.”

The AMETF benchmarks against the MSCI World Islamic Index (Net) and selects leading global equities based on market capitalisation, financial stability, and profitability. Quarterly rebalancing ensures ongoing Shariah compliance, and quarterly income distributions are paid to investors. The fund does not engage in scrip lending. Speculative instruments and derivatives are avoided, and all 27four Global Shariah Equity AMETF investments are screened using ethical and financial criteria, enabling investors to pursue growth while maintaining portfolios aligned with Islamic values.

Global assets under management (AUM) in Shariah-compliant equities have soared to over $123 billion in 2024, a 70% increase since 2018, driven by decisive trends. Institutional investors in the Middle East and Southeast Asia, and a growing segment of private wealth clients in Africa, Europe, and North America have fuelled this expansion. They seek diversification, ethical safeguards, and strategies reflecting environmental, social, and governance priorities alongside faith-based values. Leveraging improved governance, stronger screening, and product innovation, Shariah-compliant investing has extended into over 56 countries, represented by more than 1,400 listed companies worldwide. A focus on quality and resilience — favouring lower leverage, transparency and sustainability — is attracting investors seeking downside protection in turbulent markets.

Today’s listing brings the number of ETFs listed on the JSE to 121 with a total market cap of R243 billion.

ENDS

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