الهيئة العامة للرقابة المالية

Islamic investment funds can be defined as a Mudaraba partnership contract between the fund manager and subscribers who provide the capital. Investors contribute their funds to the fund management to be invested, in return for receiving units that represent the value of each subscriber’s proportional share in the fund’s capital.

Islamic investment funds are characterized by the following features:

• Commitment to a Sharia Supervisory Committee, responsible for approving the fund in accordance with Islamic Sharia principles—from the initial concept of the fund and the issuance of the subscription prospectus to the periodic reports following the fund’s establishment.
• Investment of the fund’s assets in real investments, whether direct or indirect, in line with the Islamic approach that integrates capital and labor in accordance with Sharia principles.
• Profit distribution and loss sharing among partners in accordance with Islamic Sharia principles—profits are distributed if realized, while losses are shared if incurred.
• Fund management through recognized Sharia-compliant structures, such as the Mudaraba contract, partnership (Musharaka) contract, or agency (Wakala) contract with a fee.
• Although investor participation in Islamic investment funds is generally in cash, contributions may also take the form of in-kind assets.
• Trading of investment fund units is permissible, subject to applicable Sharia and regulatory rules in the market.

As of September 2025, the number of Islamic Sharia-compliant investment funds operating in the market reached 24 funds, with a total value of EGP 11.5 billion. The first Islamic investment fund in the Egyptian market was Al-Hisn Fund, which represents Banque Misr’s Fourth Investment Fund operating in accordance with Islamic Sharia principles.