The United Kingdom’s largest Sharia-compliant fund, operated by European banking giant HSBC, has reportedly allocated more than $130 million to acquire shares in several prominent corporations linked to the Israeli military supply chain. The investments were channeled through the HSBC Islamic Global Equity Index Fund, which manages over $8 billion in assets primarily sourced from Muslim investors seeking ethical financial instruments that adhere to Islamic principles.

A detailed analysis of the fund's portfolio revealed significant share purchases in companies such as US data analytics firm Palantir, aerospace and defense giant RTX, semiconductor manufacturer Analog Devices, technology conglomerate Honeywell, and British engine maker Rolls-Royce Holdings. Critics and investigators point out that components and artificial intelligence systems produced by these entities have been directly or indirectly utilized in military operations across the Middle East, sparking widespread ethical concerns.

Prominent Islamic finance scholars and academics have sharply criticized the governance and transparency of the European financial institution, arguing that the current screening mechanisms rely superficially on sector classifications rather than comprehensive supply-chain tracing. Experts emphasize that the case exposes a glaring gap between the marketed ‘Sharia’ label and the actual ethical realities of technical compliance within modern financial markets.

Source: www.aljazeera.com