In this Godwin Shariah Compliant Investment review, we’ll provide a background on the investment provider and the opportunity, including the advantages and risks. We’ll also define what is shariah compliant for those interested to get an overview.
UK-based Godwin Capital rolled out this investment vehicle dubbed Godwin Capital Wakala.
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This post is for informational purposes only and must not be used as the sole basis for investing. Like all fixed-income products, there’s a possibility of default. It’s essential to seek counsel, especially if you’re looking for alternative options.
Godwin have recently been delaying repayments and coupons as i announced here.
That does mean that the investment has significant risks.
Who is Godwin?
As a division of the wider Godwin Group, Godwin Capital is a real estate development and investment firm. It works with a network of public and private sector partners to oversee and carry out development and investment projects all around the United Kingdom.
The company’s main goal is to build and invest in a diverse portfolio of assets, distributing investments with different maturities and yields, ranging from short to long term and low to high. With a good balance between risk and return, this method aims to optimize the value of the Godwin Group investment program.
Godwin Capital eyes growing its investments in significant regional cities throughout the UK, with the goal of promoting growth in high-yield areas. The company operates from strategic places in Birmingham, London, and Nottingham.
Godwin Capital Investment
The Wakala investment instrument is approved as Shariah-compliant and was designed by Islamic Finance Advisory & Assurance Services or IFAAS. Such adherence to Shariah has been confirmed by a religious ruling called Fatwa.
Shariah-compliant means that it complies with the standards and tenets of the Islamic religious law. This entails staying away from pursuits that the Islamic religion forbids, like gambling and pornography.
A Shariah board must examine and approve investments and financial products that comply with the law in order to assure compliance. The board comprises a group of Islamic scholars tasked with confirming adherence to Shariah principles.
The Godwin shariah compliant investment got a nod from shariah scholar Dr. Mohamed Ali Elgari.
Who can invest in Godwin Shariah Compliant investment?
Only sophisticated and individual investors with high net worth can participate in Godwin investments.
Pros and cons of Godwin Shariah Compliant investment
Benefits of shariah-compliant investments
- Muslim investors who want to make investments in line with Islamic teachings will find this opportunity appealing.
- Godwin Capital provides investors with attractive projected return rates via the Wakala investment vehicle. This offers a promising prospective return.
- The deal exposes investors to UK real estate, which helps portfolio diversity.
Risks of shariah-compliant investments
- Until recently Godwin had an 100% track record in terms of repaying investors. That ended as I announced online. That means that the risk is now very high.
- Since this is Godwin Capital’s first Shariah-compliant product, it is difficult to assess its past performance.
- Shariah-compliant assets still represent a tiny fraction of the total investment market. This reduces the investment options.
- There are deficiencies in terms of standards, public awareness, and regulation in this sector. This makes growth and adoption more difficult.
- Because of their more constrained investment universe, shariah-compliant funds may perform worse than conventional funds in specific market conditions. Potentially lower returns may have to be accepted by investors.
- The currently held stocks may eventually cease to comply with Shariah, hence requiring the fund to sell them at perhaps disadvantageous prices.
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