eToro, Arabesque AI Introduce ShariaAI-Growth Portfolio

In a huge step forward for ethical investing, online broker eToro has introduced ShariaAI-Growth, a new Sharia-compliant investment portfolio created in conjunction with financial advice business Arabesque AI. This innovative portfolio was developed to meet the specific needs of Middle Eastern investors according to Islamic financial principles, highlighting high-growth prospects in the US stock market.

ShariaAI-Growth is being introduced six months after eToro expanded into the United Arab Emirates, as the business seeks to customize its solutions to regional requirements.

“Our goal since launching in the UAE has been to adapt our services to the changing preferences of our users here,” said George Naddaf, eToro's Regional Manager for GCC & MENA. According to a recent eToro poll, 84% of retail investors in the UAE consider environmental, social, and governance (ESG) aspects before investing, with 35% favoring Sharia compliance.

The ShariaAI-Growth portfolio includes up to 40 US shares chosen after a thorough procedure. To begin, eligible equities must fulfill certain requirements, such as a market capitalization greater than $1 billion and a minimum average daily trading volume of $10 million. These equities are then subjected to a business operations screen and financial ratio analysis to guarantee compliance with Sharia rules established by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

Arabesque's cutting-edge AI technology is critical in the final stock selection, concentrating on those with the best-projected returns, impressive profit growth over the last year, and excellent ESG ratings. “We are delighted to partner with eToro to provide faith-based investment products on a large scale, leveraging our AI capabilities and comprehensive ESG data,” stated Omar Selim, Arabesque Group CEO.

The portfolio's performance is predicted to be competitive, according to the previous success of Sharia-compliant investments. For example, during the last decade, the S&P 500 Shariah Index has outperformed its conventional equivalent, returning 14.25% per year compared to 12.96%.

Investors may begin with as little as $500, and the portfolio is rebalanced quarterly to maximize returns vs risks and transaction costs. eToro also provides users with tools and charts to help them manage their investments, as well as a social feed to keep them up to date on the latest industry trends and developments.

This strategic cooperation between eToro and Arabesque AI is a significant step toward more accessible financial solutions that not only comply with Islamic principles but also encourage sustainable and ethical investing practices.