ABOUT US

Shariah Capital is a U.S.-based company that creates and customizes Shariah compliant financial products and platforms and provides selective Shariah consulting and advisory services primarily to global financial institutions and investment firms with product initiatives directed to Islamic investors.

The company is best known for its pioneering efforts in Shariah compliant hedge funds.  It developed a proprietary software engine for screening stocks electronically, devised a Shariah compliant, arboon-based short sale methodology and modified prime brokerage documentation that led to the first Shariah compliant hedge fund and fund of hedge funds.  Shariah Capital was awarded the prestigious Master of Islamic Funds Award in 2007 in the “Best Innovation/New in Islamic Funds” category and named “Best U.S. Islamic Financial Services Firm” in 2008 by Global Finance magazine.

Shariah Capital is publicly traded on the Alternative Investment Market (AIM) of the London Stock Exchange (trading symbol:  SCAP.L).  It reports to the Financial Services Authority (FSA) in the U.K. and is registered and licensed by the Dubai International Financial Centre (DIFC) in Dubai, United Arab Emirates. The company is incorporated and headquartered in the United States.  Its regional office operates from Dubai.

Shariah Capital’s major shareholders include Eric Meyer, Chairman and CEO and the Dubai Multi Commodities Centre Authority (DMCCA), a Dubai World Group company.  Dubai World is an investment arm and holding company of the Dubai government.  Approximately 20% of Shariah Capital’s shares are in the public float.  Its auditors are Rothstein Kass and its financial statements are publicly disclosed. 

Shariah Capital draws upon world-class Shariah scholars to form separate Shariah boards for each of its projects.  Its affiliated scholars include Sheikh Nizam Yaquby (Bahrain), Dr. Mohd Daud Bakar (Malaysia), Dr. Mohammad Abdul Rahim Sultan Al Olama (UAE), Dr. Yousef Abdullah Al-Shubaily (Saudi Arabia) and Shaykh Yusuf Talal DeLorenzo (United States), Chief Shariah Officer of Shariah Capital.  Shaykh Yusuf, an internationally-recognized Shariah scholar, is a full-time executive of Shariah Capital and a member of its Board of Directors.  Shariah Capital is a member of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).  Shaykh Yusuf, Sheikh Nizam, Dr. Daud and Dr. Al Olama all are members of the AAOIFI Shariah Board.

In 2007, Shariah Capital jointly announced with Barclays Capital the launch of the Al Safi Trust, a comprehensive Shariah compliant platform for alternative investments.  Designed as a “one-stop” platform primarily for single strategy hedge funds, Al Safi provides Shariah screening and arboon short-sale solutions along with prime brokerage, administration and trustee oversight within a pre-established Cayman trust framework.

In 2008, DMCCA purchased a 4.99% equity position in Shariah Capital.  Subsequently, DMCCA’s Chief Executive, Dr. David Rutledge, was elected to its board of directors.  Shariah Capital later formed a joint venture, Dubai Shariah Asset Management (DSAM), with Dubai Commodity Asset Management (DCAM), a wholly-owned division of DMCCA.  DCAM, an investment company licensed by the UAE Central Bank, develops and distributes Shariah compliant, commodity-linked investment products in the UAE.  DSAM distributes in multiple markets outside the UAE.  The first four hedge fund strategies were funded by DMCCA with $50 million each and registered on the Al Safi Trust platform.  They are marketed under the “DSAM Kauthar” brand name.    

In 2009, DMCCA and Shariah Capital jointly announced the Dubai Shariah Hedge Fund Index, the first published index comprised of Shariah compliant hedge funds.  Calculated and reported by Thomson Reuters, the index represents an equally-weighted basket of the four initial DSAM Kauthar single-strategy funds.  It mirrors the performance of the DSAM Kauthar Commodity Fund, Ltd., a fund-of-funds now open to investors on a monthly basis (see PRODUCTS).