As-Salama
A Synergistic Value Proposition
Combining the advantages of Australia as an attractive investment destination, with As-Salama’s Islamic principles-led approach, the overall value proposition revolves around offering shariah-compliant opportunities including commercially attractive halal assets in Australia.
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Importantly, such opportunities are designed to be managed seamlessly and synergistically alongside philanthropic initiatives.
Shariah-Compliant Investing in Australia
Australia is a highly attractive investment destination for both local and international investors for the following reasons:
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The country is socio-politically stable with strong rule of law and low sovereign risk.
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It has abundant natural resources, advanced technological capabilities, and a highly developed service-based economy.
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There is strong push by the Australian government to further develop agricultural, commercial, industrial, and renewable energy infrastructure in line with sustained population and economic growth.
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There is also strong and growing demand for technologies that add value to and enable better service delivery in sectors such as healthcare, aged care, education, finance and food.
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Investee businesses are developed locally to operate and collaborate globally in order to fully capture their target market opportunities.
Meanwhile, As-Salama seeks to offer shariah-compliant and well-conceived investment opportunities. Investments will be aligned with the following Islamic principles:
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Shared profit and loss for all stakeholders (investors).
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Excluded are haram (prohibited) investments involving riba (interest), tobacco, alcohol, weapons, gambling, speculation, pork, adult entertainment, and investments leveraged by borrowings.
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A share of investment returns (that is, zakat or obligatory charity, and sadaqah or voluntary charity) is allocated towards philanthropy (charitable causes).
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Compliance with Islamic requirements is ensured via an independent Shariah Finance Board and specialist shariah finance advisors.
As-Salama seeks to be the pioneer of and leading participant in Australian shariah-compliant offerings for wholesale investors. It seeks to harness surging demand for shariah-compliant investments in growth businesses and business assets across a wide range of ‘new economy’ and ‘globalized’ industries.
Industries with particularly high growth potential will be prioritised, including:
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Commercial real estate
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Conventional and digital healthcare
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Technology-enabled aged and disability care
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Education technology
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Construction technology
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Sustainable food production and agricultural technology
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Functional foods and wellness products
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Sustainable tourism
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Circular economy
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Clean technology
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Renewable energy
Philanthropy as a Cornerstone
A key founding basis for As-Salama is that a share of investment returns should be allocated towards philanthropic initiatives delivered by worthy and well-governed community organisations. Such organisations must be endorsed as Deductible Gift Recipients (DGRs) by the Australian Taxation Office (ATO).
Philanthropic areas of interest include:
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Islamic schooling and education
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Islamic youth leadership training and development
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Inter-faith dialogue
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Promotion of Islamic arts and literature
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Healthcare
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Disability care
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Supporting persons with special needs (such as victims of domestic violence)
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Empowering socio-economically disadvantaged groups (such as refugees)
These will be Australian initiatives with global relevance. And as the As-Salama ecosystem matures, funds directed toward such philanthropic activities will be increased.
Hence, the As-Salama Foundation is being established as a registered charity constituted as a Public Ancillary Fund under the trusteeship of a not-for-profit company limited by guarantee. The As-Salama Foundation will support charitable projects and work based on the Qur’an and the Sunnah (actions) and hadith (sayings) of Prophet Muhammad, namely, the collection and distribution of donations to the needy.
Donations will be invested to provide a self-sustaining source of distributions to other registered charities.
Through its philanthropic activities and through investing with creation of positive social impacts as an express goal, the As-Salama ecosystem will implement and embody the core teachings in the Islamic scripture and Prophetic traditions.
The As-Salama Foundation will also engage in religious and inter-faith activities, cementing stronger and friendlier relations between Muslims and peoples of other faiths to foster an ummah (Muslim community) that embraces universal values of peace, respect, equality and tolerance.