Stake, a Dubai-based fintech and real estate investment platform, has announced that it has become the first in the industry to be awarded a Shariah certification. Also known as a Fatwa, the certification was granted by the Shariah Executive Committee of Guidance Financial Group (“Guidance”), a financial services firm specialising in the fields of Shariah-compliant investments and financing as well as Shariah advisory services.
Supported by the Guidance advisory team, the Stake Shariah certification process was led by Dr. Mohd Daud Bakar, who provided the Fatwa to Stake after reviewing the structure, mechanism and relevant key legal documentation in relation to the digital real estate investment platform and was also satisfied with the enhancements being put in place to ensure constant compliance with the tenets of Shariah.
Stake was created to provide retail investors from all over the world access to fractional real estate investments in a transparent and easy way. Receiving Shariah certification opens the platform up to a significant pool of investors. In fact, Global Islamic Finance assets are forecast to reach $3.69 trillion by 2024, according to a report published by the Islamic Development Bank in 2020.
“We are delighted to have achieved this stamp of approval from the esteemed Shariah Supervisory Board of Guidance Financial Group” commented Rami Tabbara, Co-Founder of Stake. “We were originally convinced that the Stake platform already was aligned with the basic principles of Shariah. Today, this has been officially validated by some of the leading Islamic scholars of the world.”
Following this certification, customers of Stake can expect Shariah-compliance in key aspects of their investments, from Client Money Accounts utilising Shariah-compliant bank accounts to the utilisation of only Islamic insurance or Takaful for its portfolio of Properties under management, as well as appropriately structured online Investment Agreement and Tenancy Agreements that are in harmony with Shariah principles. Additionally, Stake will be subjected to an annual Shariah audit to ensure all commercial activities remain in compliance with Shariah precepts as originally approved or certified.
Manar Mahmassani, Co-Founder of Stake added: “Shariah conscious investors from all over the world are now able to directly access the oldest and largest tangible investment asset class in the world and build bespoke portfolios of properties of their choosing, starting in the thriving city of Dubai.”
Since launching earlier this year, Stake has grown from strength to strength, attracting over 12,000 registered users from 28 countries and 98 different nationalities, completing a total of 18 property investments on its platform. Stake’s advisors include Daniel Miller, the Co-Founder of Fundrise, the first and largest real estate crowd-investing platform in the US, as well as Gaurav Shivpuri, an ex-veteran at JLL, a prominent global real estate advisory firm. The company recently added Walid Mansour, Partner at Middle East Venture Partners (MEVP), as an advisor and independent board member.