Amana Funds Allow Muslims to Invest According to Islamic Principles

March 13, 2005

Source: The Miami Herald

On March 13, 2005 The Miami Herald reported, "What do Anheuser-Busch, Playboy and Bank of America have in common? They are forbidden -- or haraam -- stocks for the Amana Funds, an $81 million-asset mutual-fund family in Bellingham, Wash., that invests according to Islamic principles. The funds stay away from alcohol, pornography, tobacco and gambling, just as observant Muslims do in their personal lives. For many Muslims, U.S. banks fall into the same category, because Islamic law forbids borrowing or lending money with interest. Investing in insurance companies is also off limits, because insurers invest in debt instruments like bonds. Even companies with too much debt are forbidden investments. Since launching a marketing campaign in 2001, the Amana Funds has more than doubled in assets, catering to people who have few choices for investing in a financial system not geared to their beliefs concerning what is halal, or permissible."