Emerging Markets Islamic

The global Islamic finance industry manages over $3 trillion in assets, with Shariah-compliant equity funds representing the fastest-growing segment. Shariah screening filters out companies involved in alcohol, tobacco, weapons, gambling, and conventional banking — but crucially, it also excludes companies with excessive debt, as high leverage is considered non-compliant. This debt-screen has historically given Islamic equity indices a quality tilt, as highly-leveraged companies — which often struggle first in recessions — are systematically excluded.