Best Halal Investment Options In Bangladesh (2025)

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Shariah-compliant investment options available in Bangladesh for 2025 include equities, mutual funds, sukuk, real estate assets, halal stocks and ETFs. Approximately 39% of companies listed on the Dhaka Stock Exchange (DSE) adhere to Islamic investment principles, offering a significant base for ethical investors. With growing access to digital platforms, individuals can now screen Shariah-compliant assets more easily and build portfolios that align with their values.

In recent years, Bangladesh has steadily expanded its offering of faith-based financial instruments. The current landscape includes Islamic banks, sukuk, mutual funds, and carefully screened stocks. These halal investment options form the foundation of Islamic investment in Bangladesh, which prohibits interest-based income and companies involved in non-permissible business activities. Our focus here is to outline the main offerings supported by market infrastructure and regulatory frameworks.

Risk warning: All investments carry risk, including potential capital loss. Economic fluctuations and market changes affect returns, and 40-50% of investors underperform benchmarks. Diversification helps but does not eliminate risks. Invest wisely and consult professional financial advisors.

What is considered as a halal investment in Bangladesh?

Halal investments are based on Sharia principles

Halal investment in Bangladesh refers to financial decisions that fully comply with Islamic teachings, particularly as guided by Shariah law. This includes avoiding industries that are considered haram—such as gambling, alcohol, and interest-based finance — and steering clear of speculative or high-uncertainty contracts. Shariah advisory boards within financial institutions help ensure these standards are consistently upheld by evaluating each product or investment opportunity.

To ensure full compliance, Shariah screening processes include specific financial thresholds. For example, a company may be excluded if its interest-bearing debt exceeds 30% of its market capitalization or if it generates significant revenue from non-permissible sources. These filters serve as practical tools to help investors select companies that meet religious guidelines.

Market environment for halal investment in Bangladesh continues to evolve within a regulated ecosystem. A portion of DSE-listed companies undergoes detailed Shariah screening, and by 2025, roughly 35% are found to meet the necessary criteria. This allows retail and institutional investors to structure portfolios that remain faithful to Islamic investing ethics, without compromising financial opportunity.

Islami Bank Bangladesh PLC, the nation’s leading Islamic bank since 1983, plays a central role in advancing the country’s halal finance sector. It provides investment options built on mudarabah and musharakah frameworks, which emphasize profit-sharing and partnership rather than fixed interest. These principles reflect the core values of Islamic finance and form the backbone of most offerings branded under halal investment in Bangladesh.

Types of islamic investment in Bangladesh

The Islamic finance and investment landscape in Bangladesh functions within a two-tiered system. Alongside 10 standalone Islamic banks, more than 20 traditional financial institutions also offer Shariah-compliant products through designated Islamic windows. These banks and financial firms operate under the supervision of both internal and external Shariah boards, which are responsible for approving financial contracts, performing annual audits, and ensuring adherence to Islamic financial principles. This oversight extends across various functions including deposits, fund allocation, and asset management.

Although Bangladesh Bank has not introduced a separate regulatory regime solely for Islamic banking, it has incorporated guiding principles within the wider financial framework. This integration supports gradual and compliant sectoral growth. As of 2022, Islamic finance made up more than 28% of the total banking sector in the country.

Bank investment contracts

Islamic investment banking in Bangladesh plays a major role in the financial sector, with a growing number of fully Shariah-compliant banks and dedicated Islamic windows within conventional banks. Institutions operate under the guidelines of the Bangladesh Bank and are supervised by in-house Shariah boards to ensure adherence to Islamic principles.

As of recent data, over 25% of total banking deposits in Bangladesh are held in Islamic banking institutions, reflecting strong public trust in halal financial services.

Comparison of leading Islamic investment banks in Bangladesh
Bank	Islami Bank Bangladesh Limited (IBBL)	Al-Arafah Islami Bank	Shahjalal Islami Bank
Overview	Oldest and largest Islamic bank; pioneer since 1983	Focuses on ethical development and SME financing; founded in 1995	Tech-driven Islamic bank; strong digital focus; founded in 2001
Shariah Oversight	Dedicated Shariah Supervisory Committee	Independent Shariah Council	Internal Shariah Board
Retail Investment Products	- Mudharabah savings & term deposits - Murabaha accounts	- Wakalah-based managed deposits - Murabaha and Bai-Muajjal options	- Ijara, Bai-Muajjal, Diminishing Musharakah
Corporate Finance Services	- Murabaha & Ijara financing - Sukuk participation - Project & industrial funding	- SME and agriculture finance - Islamic housing loans- Sukuk access	- Islamic leasing - Custom Shariah - compliant business finance

Islamic banks in Bangladesh provide several investment options based on classical Shariah contracts:

Mudarabah (profit-sharing): the bank invests depositor funds into halal ventures, and profits are shared based on pre-agreed ratios. Example: Saving & Investment Accounts.
Murabaha (cost-plus sale): the bank purchases goods and sells them to clients at a markup, often used in SME financing. Example: Vehicle Financing, Home Financing.
Ijarah (leasing): clients lease assets from the bank with structured payments, commonly used in vehicle and equipment financing. Example: Lease-to-own properties.
Wakalah (agency-based investment): the bank acts as an agent, investing on behalf of the client for a fixed or performance-based fee. Example: Investment agency contracts.

In addition to classical contracts, Islamic banks in Bangladesh offer investment services through two primary channels:

Direct investments (asset management): islamic banks offer Saving & Investment Accounts based on Mudharabah or Wakalah contracts, where customer funds are directly invested in Shariah-compliant ventures with profit-sharing.
Intermediary access: through the bank, clients can invest in sukuk (Islamic bonds) or participate in halal mutual funds, benefiting from expert screening and Shariah oversight.

Mutual funds

A key element of Islamic investing options is the use of Bangladeshi mutual funds that follow Shariah principles. These are administered by public bodies such as ICB AMCL, along with private asset managers. Prominent offerings include the ICB AMCL Islamic Unit Fund and IFIL Islamic Mutual Fund-1. These funds invest exclusively in assets that pass Shariah screening and exclude instruments involving interest or engagement in restricted industries. Operations are continually reviewed and audited for Shariah compliance.

Mutual funds in Bangladesh
Fund Name	Type	Strategy	NAV/Unit (BDT)	Annual Return	Management Company
EDGE AMC Growth Fund	Open-end	Equity	12.74	7.52%	EDGE Asset Management
EDGE High Quality Income Fund	Open-end	Fixed Income	12.12	7.74%	EDGE Asset Management
EDGE Al-Amin Shariah Consumer Fund	Open-end	Shariah-compliant (Consumer)	10.42	1.50%	EDGE Asset Management
3i AMCL 1st Mutual Fund	Open-end	Balanced	7.37	-5.80%	3i Asset Management
MBL 1st Mutual Fund	Closed-end	Balanced	6.76	46.54% (accumulated)	LR Global Bangladesh
Trust Bank 1st Mutual Fund	Closed-end	Balanced	6.76	Not available	RACE Management
ICB AMCL Balanced Fund	Open-end	Balanced	Not available	Not available	ICB Asset Management
Grameen Mutual Fund One	Closed-end	Balanced	Not available	Not available	AIMS of Bangladesh

Sukuk

Sukuk are Shariah-compliant securities structured on the basis of asset ownership or cash flow entitlement. These financial products do not involve interest and are widely used to fund real-sector initiatives. Bangladesh issued its first sovereign sukuk in 2020 to finance infrastructure programs. Both public entities and private firms increasingly rely on sukuk for financing, while retail investors also find them an appealing non-interest-based income option. Below you can find current sukuk bonds in Bangladesh available for investing.

Best sukuk bonds in Bangladesh
Sukuk Name	ISIN	Tenure	Profit Rate	Structure	Purpose	Tradability
Safe Water Supply to the Whole Country	BDS092501059	5 years	4.69%	Ijarah	Nationwide safe water supply project	Tradable at negotiated price
Infrastructure Development of Govt Primary Schools	BDS092601050	5 years	4.65%	Ijarah	Infrastructure development of government primary schools (1st phase)	Tradable at negotiated price
IRIDP-3 Social Impact Sukuk	BDS092701051	5 years	4.75%	Istisna'a and Ijarah	Infrastructure development under IRIDP-3	Tradable at face price
CIBRR-2 Socio-Economic Sukuk	BDS093201071	7 years	9.25%	Istisna'a and Ijarah	Construction of important bridges on rural roads (Phase-II)	Tradable post 50% asset delivery
RDIRWSP Socio-Economic Development Sukuk	BDS093301072	7 years	To be announced	Istisna'a and Ijarah	Rajshahi Division Important Upazila & Union Road Widening & Strengthening Project	Tradable post 50% asset delivery

Real estate investment

Property is a major avenue within Islamic investing opportunities in Bangladesh. One common way to invest in halal real estate is through Islamic banks, which structure deals using Shariah-compliant contracts like Ijarah (leasing) and Musharakah (joint partnership).

These models allow:

Shared ownership between bank and client.
Lease-based income instead of interest.
Gradual transfer of full ownership to the investor over time.

Islamic banks in Bangladesh offer such schemes for residential, commercial, and mixed-use properties, carefully avoiding fixed-interest terms and riba-based returns.

Another option for halal real estate investment is through Islamic REITs (Real Estate Investment Trusts) and Shariah-compliant property funds, which pool investor capital into diversified real estate portfolios under Shariah governance.

Notable examples include:

LankaBangla Shariah-Compliant Funds. Offers Islamic investment products that include exposure to real estate assets screened under Shariah guidelines. These funds are designed for investors seeking halal capital growth and long-term income through diversified asset allocation, including property-backed securities.
IDLC Islamic Real Estate Products. Provided under IDLC Finance’s Islamic window, these products support Shariah-compliant financing for both real estate developers and individual investors. They typically use Musharakah Mutanaqisah (diminishing partnership) or Ijara models to structure property investments and leases.
DBH Islamic Home Finance Solutions. Offers Islamic mortgage solutions for residential property purchases. These are structured to avoid interest, using lease-to-own models that comply with Islamic finance standards, making them accessible for middle-income homebuyers seeking halal financing.

These instruments allow both individual and institutional investors to access the real estate market without directly managing property, while remaining compliant with Islamic finance principles.

Shariah-compliant stocks & equities

Investors can access halal stocks in Bangladesh through platforms like Musaffa and curated lists maintained by Shariah boards. Companies qualify by passing strict screens — operating in permissible industries, keeping debt-to-asset ratios under approximately 33%, and limiting interest income to below 5%. These panels also monitor retained earnings to ensure profits aren’t reinvested in haram activities, helping Muslims align their equity investments with ethical Islamic standards.

Shariah-compliant stocks in Bangladesh
Company Name	Ticker	Sector	Market Cap (BDT)
Grameenphone Ltd	BD:GP	Telecommunications	447.08 Billion
Walton Hi-Tech Industries Plc	BD:WALTONHIL	Consumer Electronics	151.22 Billion
Islami Bank Bangladesh Ltd	BD:IBBL	Banking	Not specified
Al-Arafah Islami Bank Ltd	BD:AIBL	Banking	Not specified
First Security Islami Bank Ltd	BD:FSIBL	Banking	Not specified
Global Islami Bank Ltd	BD:GIB	Banking	Not specified

For a comprehensive and up-to-date list of Shariah-compliant stocks in Bangladesh, you can refer to platforms like Islamicly and Biniyog.

ETFs and index funds

Halal ETFs in Bangladesh are still in their early stages. As of now, only one ETF — the DSE 30 Index ETF — is available on the local market. However, this product is not explicitly Shariah-compliant, and investors should independently verify its alignment with Islamic principles before investing.

At the same time, Bangladesh does have a dedicated DSEX Shariah Index, which tracks stocks screened for compliance with Islamic finance standards. This index excludes companies involved in interest-based finance, alcohol, gambling, and other non-halal sectors. It can serve as a helpful reference for stock selection and was discussed in the context of equity investing above.

Note: As of now, there is no ETF tracking the DSEX Shariah Index, but such a product could be a promising step for the local halal investment ecosystem in the future.

For now, Bangladeshi investors seeking Shariah-compliantETF exposure can look to international halal ETFs available via global brokers. These funds apply AAOIFI or Dow Jones Islamic screening standards and are diversified across major markets.

Shariah-compliant ETFs accessible to Bangladeshi investors
ETF Name	Ticker	Index Tracked	Compliance Standard	Excludes
SP Funds S&P 500 Sharia Industry ETF	SPUS	S&P 500 Shariah	AAOIFI / Dow Jones Islamic	Alcohol, gambling, pork, conventional finance
Wahed FTSE USA Shariah ETF	HLAL	FTSE USA Shariah Index	AAOIFI	Tobacco, arms, adult entertainment, interest
iShares MSCI World Islamic ETF	ISWD	MSCI World Islamic Index	MSCI Shariah Screening	Non-halal sectors and debt-heavy companies

Top halal investment opportunities for retail and institutional investors

Most people think of top halal investment options in Bangladesh as just Islamic banks or sukuk, but that’s only the surface. What’s emerging now is a dynamic second layer: structured Shariah-compliant investment opportunities tailored for specific sectors like green energy, tech startups, and even halal agri-businesses. One striking development is the rise of “impact-linked takaful funds,” which blend ethical investment-linked insurance models with returns tied to community development KPIs. These aren’t just compliant, they’re actively pushing Islamic finance toward high-impact, performance-driven innovation.

Institutional investors are increasingly turning to Islamic investment ideas like real estate investment trusts (REITs) that focus on urban growth corridors in Dhaka and Chattogram. Unlike conventional REITs, these are screened for Shariah principles at both asset and financing levels. For example, a halal REIT would avoid projects financed through interest-based loans, and instead rely on equity partnerships or Islamic leasing. This model protects investors from riba while giving them access to a booming real estate market with transparent rental income.

A lesser-known but fast-growing space is Islamic venture capital. These funds are curated under mudarabah or musharakah structures, where profits are shared but risk is transparently disclosed. In Bangladesh, startups in fintech, halal e-commerce, and sustainable packaging have begun receiving funding under these models. It opens up halal investment opportunities that don’t just tick the boxes, but foster startup ecosystems that are both ethical and scalable, something conventional VC culture often lacks.

Retail investors aren’t left out either. Platforms like IslamiBank Securities and Shanta Asset Management are now introducing retail-friendly, Shariah-compliant investment options with smart screening tools. These tools help users filter stocks based on debt ratios, income sources, and compliance reports in real-time. This creates an environment where the average Muslim investor in Bangladesh can access the best halal investment ideas, not just through guesswork, but with data-backed confidence and religious alignment.

Where to track the market and find support?

When it comes to tracking the market in Bangladesh, many retail investors miss some super helpful tools. The Chittagong Stock Exchange, for example, often shows what’s happening in smaller industries and reacts differently than Dhaka. If you watch both, you can spot early shifts that many others miss, especially during political or policy uncertainty.

A rarely used but useful method is keeping an eye on Shariah-compliant funds. These aren’t just for religious investors, they help show where investor confidence is headed. Since Islamic investment in Bangladesh follows strict rules for picking which stocks qualify, changes in these portfolios often hint at broader trends. When they pull out of debt-heavy companies, it sometimes signals trouble ahead for that whole sector.

Online forums like ShareBazar BD and AmarStock have become places where regular investors share sharp insights. People post buzz that sometimes predicts price swings. Traders who pay attention can spot changes in tone before prices even move. Many users focused on Islamic finance and investment in Bangladesh also use these platforms to filter stocks by halal standards and discuss compliance tips.

One surprising way to spot market trends is by watching rural banks and microfinance groups. They may seem small, but how they lend and get repaid gives clues about what people in towns and villages are spending on. This kind of info often shows up long before any official numbers come out, especially in agro or rural-linked industries.

Also note that if you're ready to move beyond regional limitations, there’s a wide range of halal investment options to explore. From shariah-compliant stocks to crypto and even Forex, several platforms now provide Islamic trading accounts that fully comply with Shariah principles by steering clear of interest. These accounts allow you to build wealth while staying true to your beliefs. If that resonates with you, take a look at the halal-friendly platforms below and choose the one that aligns best with your financial goals.

Best brokers that offer Islamic account
	Currency pairs	Min. deposit, $	Regulation	TU overall score	Open an account
OANDA	68		FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA	6.79	Open an account Your capital is at risk.
RockGlobal	50	200		1.96	Study review
Pepperstone	90		ASIC, FCA, DFSA, BaFin, CMA, SCB, CySec	7.17	Open an account Your capital is at risk.
FOREX.com	80	100	CIMA, FCA, FSA (Japan), NFA, IIROC, ASIC, CFTC	6.95	Study review
Plus500	60	100	FCA, CySEC, MAS, ASIC, FMA, FSA (Seychelles)	6.83	Open an account Your capital is at risk.

Use waqf-based assets and structured sukuk layering for smarter halal returns in Bangladesh

New investors in Bangladesh usually start with halal mutual funds or Shariah compliant stocks, but there is something far more interesting emerging in 2025. Digital waqf based assets are real world properties or ventures managed for public good, like small clinics, rental homes, or farmland, now being offered as micro investments. You can hold a piece of a working asset, earn halal income, and support a cause all at once. It is ethical investing with real, grounded impact.

A more advanced but beginner friendly trick is to blend your investments using sukuk bonds with different timelines. Instead of putting all your money into one long term Islamic bond, you can mix short term sukuk with equity based halal products. This helps keep your returns steady while giving you some room to adjust for inflation or market shifts. It is a more flexible way to invest according to Islamic rules, especially when done through a regulated local platform.

Conclusion

Halal investment instruments in Bangladesh are available in standardized formats through equities, mutual funds, real estate, and sukuk. Oversight is provided within the existing financial system through Shariah boards and internal compliance mechanisms. Investors access verified assets and market analysis via local and digital platforms. Funds and public instruments are accompanied by transparent reporting and Shariah audit documentation. Non-resident participation is subject to specific restrictions based on asset type and structure. Asset-level disclosure supports decision-making within defined compliance frameworks.

FAQs

What risks may arise when investing in halal instruments?

Key risks include market volatility, limited liquidity, and errors in Shariah screening. Delayed profit distribution due to contract structure is also possible.

How can you confirm that an instrument passed independent Shariah screening?

Look for a Shariah certification, names of board members, and audit documentation. These should be publicly available and verifiable through financial institutions.

Is it allowed to reinvest profits from halal assets into other forms of capital?

Yes, as long as the new assets also meet Shariah criteria. Reinvestment requires reassessing compliance with each new instrument.

What common mistakes do beginners make when selecting halal assets?

They often overlook contract terms, overestimate returns, or fail to verify revenue sources. Relying on outdated or partial screenings is also frequent.

Team that worked on the article

Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses that want to improve their Google search rankings to compete with their competition. With expertise in search engine optimization (SEO) and content marketing, he ensures his work is both informative and impactful.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

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Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).