eToro and Arabesque AI Launch an AI Powered Investment Portfolio

Story highlights

• eToro and Arabesque AI launch ShariaAI-Growth, an AI-powered Sharia-compliant investment portfolio.
• This caters to the growing demand for ethical and faith-based investing in the Middle East.
• ShariaAI-Growth offers a chance to align faith with financial goals through a meticulously selected portfolio of US equities.

Online investment platform eToro and AI-powered investment advisor Arabesque AI are revolutionizing Islamic investing in the Middle East with the launch of ShariaAI-Growth, a new Sharia-compliant portfolio. This collaboration bridges the gap between faith-based principles and technological advancements in portfolio management.

Tailoring Investments to Evolving Needs

“Our goal has been to tailor our services to meet the evolving needs of our users in the region,’ needs,” said George Naddaf, GCC & MENA Regional Manager at eToro. Recognizing the rising demand for ethical and Sharia-compliant investments, a recent eToro survey revealed that 84% of UAE retail investors consider ESG factors, while 35% prioritize Sharia compliance. ShariaAI-Growth caters to this growing segment by leveraging AI and ESG data for strategic portfolio selection.

Sharia-Compliant Performance

Sharia-compliant investment products have a proven track record. The S&P 500 Shariah Index has consistently delivered competitive returns, outperforming the regular S&P 500 Index over the past decade (14.25% vs 12.96% per year). This highlights the potential for strong financial returns while adhering to Islamic principles.

Omar Selim, Group CEO of Arabesque AI, expressed his enthusiasm about the collaboration, “We are delighted to partner with eToro to deliver faith-based investment products at scale, powered by Portfolio Dragon and ESGBOOK.”

A Multi-Layered Selection Process

ShariaAI-Growth meticulously selects up to 40 US equities. The process starts with a market cap filter, ensuring only established companies (>$1 billion) with high liquidity (>$10 million daily trading volume) are considered.

Next, these stocks undergo a rigorous Sharia compliance screening based on AAOIFI’s Sharia principles. This ensures adherence to Islamic business practices and prohibits investments in industries like alcohol or gambling.

Finally, Arabesque AI’s technology takes center stage. The remaining compliant stocks are evaluated based on projected returns, recent earnings growth, and robust ESG scores. This ensures the portfolio prioritizes both financial potential and ethical considerations.

The ShariaAI-Growth portfolio is rebalanced quarterly to optimize returns and manage risk. Investors can access performance data and market insights through eToro’s platform, while a social feed keeps them updated on industry developments. The minimum investment of $500 makes this opportunity accessible to a wider range of investors seeking to align their faith with their financial goals.