UK’s First Shariah-Compliant Social Investment Fund Launches

In a move to promote financial inclusion, the Local Access Bradford Fund has launched the UK’s first Sharia-compliant social investment loan product, with £5 million in capital to support underserved social entrepreneurs, particularly Muslims who have long been excluded from conventional finance due to riba-based lending.

The new fund is specifically designed to offer zero-interest loans. Developed by Key Fund, a community-focused social investment finance provider operating across the North and Midlands of England, and Impact Hub Yorkshire, an organisation dedicated to supporting local social innovators and entrepreneurs through community workspaces, networks and business development programmes, the fund is delivered through the Local Access Bradford District programme. The initiative responds to longstanding barriers faced by Muslim and minority ethnic social entrepreneurs, who have often been unable to access existing social investment products due to Sharia restrictions.

Loans ranging from £25,000 to £250,000 will be available. While open to all applicants in the Bradford area, the model has been notably structured to reach the city’s growing Muslim entrepreneurial community. All deals will be signed off by a qualified mufti, and the fund will undergo yearly Sharia compliance reviews.