Real Estate funds
Real Estate funds invest in tangible assets like houses and building blocks and thus are very popular with Muslim investors. If a client has not the financial capacity to buy a house of his own, he or she can participate on the wealth creation potential of the real estate market by investing in Real Estate fund. Investment in real estate is in general permitted by the Shar’iah, as long as no forbidden activities are carried out inside the buildings (producing weapons, serving alcohol, breeding pigs etc.) The structure of a Real Estate fund can be designed – same as with equity funds – according to the Mudarabah oder the Wakalah principle.

