Islamic Banking
Arta Finance Launches Shariah-Compliant Investment Portfolios

The firm, which is an example of digitally-driven wealth management, has launched another offering – one that targets the Shariah finance space.
Arta Finance,
which is headquartered in the US and Singapore, has globally
launched its first Shariah-compliant investment portfolios.
Each portfolio is structured as a satellite strategy – a
curated basket of individual stocks built around a specific
investment theme.
Shariah finance typically excludes activities deemed forbidden
(haram) under Islamic law, such as charging interest on loans,
gambling, alcohol and trade in pork-related products. Instead of
interest, parties engage in lease arrangements whereby an asset
transfers to the lessee at the end of the term; another is akin
to a cost-plus financing deal where a lender sells an asset to a
borrower at a higher price and pockets the difference as
profit. Several Shariah financial instruments, such as forms of
bonds, known as Sukuk, have arisen in recent decades.
Arta Finance said its initial suite of strategies includes:
-- FATMAA – Exposure to six US mega-cap leaders in AI,
mobility, and cloud infrastructure;
-- Architects of AI – Companies driving AI infrastructure
and enterprise solutions;
-- Dividend Leaders – US stocks offering stable,
Shariah-compliant dividend income; and
-- Cybersecurity and Digital Protection – Firms securing the
global digital economy.
“With the launch of our Shariah-compliant portfolios,
faith-aligned investors can now engage with thematic strategies
that offer customisation, transparency, and institutional-grade
tools – while meeting rigorous standards of Shariah
compliance,” Caesar Sengupta, co-founder and CEO of Arta Finance,
said.
Each portfolio comprises stocks certified by the Financial
Shariah Advisory & Consultancy, a Singapore-based authority on
Islamic finance and a unit of Pergas Investment Holdings. The
certification adheres to globally-recognised Shariah screening
standards, Arta said.
Assets are held in investor-owned accounts at BNY Pershing, with
liquidity typically within three to five business days.
In addition to direct access for accredited investors, Arta’s
Shariah-compliant portfolios are available to financial
institutions and advisors worldwide, who can use white labelled
versions of the Arta platform or embedded integrations.
Arta said that Islamic finance is projected to grow from $3.38
trillion in 2024 to more than $7.4 trillion by 2033. Meanwhile
Global Growth Insights Islamic Finance Market Report highlights a
33 per cent increase in awareness of Shariah-compliant investment
tools in the US, Arta Finance said.
Earlier in May, Arta Finance – which in July 2024 obtained a
regulatory approval to launch in Singapore –
partnered with Income Advisory Financial
Advisers.
IAFA is a wholly-owned financial advisory firm of Income
Insurance Limited. The pact will bring investment opportunities
and advanced financial tools to Singapore’s accredited
investors.
Arta Finance is backed by Peak XV, Ribbit Capital, Coatue,
EDBI, and more than 140 figures in tech and finance. IAFA is
licensed and regulated by the Monetary Authority of Singapore.
The parent firm – Income Insurance – was established in 1970
in the city-state.