Shariah Capital is a U.S.-based company that specializes in Shariah, emerging market, and cross-border business opportunities. At the parent level Shariah Capital creates and customizes Shariah complaint financial products and platforms and provides highly selective Shariah advisory services primarily to global financial institutions, sovereign wealth funds, and Shariah focused investment firms with product initiatives directed to Islamic investors.
In April 2013 Shariah Capital, in collaboration with Jonathan Gafni, created a wholly owned subsidiary Compass Point Analytics. Compass Point Analytics provides proactive solutions for organizations facing the Committee on Foreign Investment in the United States (CFIUS)
In May 2013 Shariah Capital, in collaboration with Mondial (Dubai) and Tatweer Management Consulting, created a Joint Venture in the United Arab Emirates. This joint venture provides Shariah focused IFA services and solutions within the UAE.
The company is well known for its pioneering efforts in Shariah compliant hedge funds. It developed a proprietary software engine for screening stocks electronically, devised a Shariah compliant, arboon-based short sale methodology, and modified prime brokerage documentation that led to the first Shariah compliant hedge fund and fund of hedge funds. Shariah Capital was awarded the prestigious Master of Islamic Funds Award in 2007 in the "Best Innovation/New in Islamic Funds" category and named "Best U.S. Islamic Financial Services Firm" in 2008 by Global Finance magazine. In 2011, World Finance magazine named Shariah Capital "Best Shariah Compliant Hedge Fund Service Provider."
Shariah Capital is privately held. The firm's majority shareholder is the Company’s Chairman and CEO Eric Meyer. Major shareholders include The Dubai Multi Commodities Centre Authority (DMCCA), and agency of the Dubai government
Shariah Capital draws upon world-class Shariah scholars to form independent Shariah boards for many of its projects. Its affiliated scholars include Sheikh Nizam Yaquby (Bahrain), Dr. Mohd Daud Bakar (Malaysia), Dr. Mohammad Abdul Rahim Sultan Al Olama (UAE), and Dr. Yousef Abdullah Al-Shubaily (Saudi Arabia).
In 2007, Shariah Capital jointly announced with Barclays Capital the development of the Al Safi Trust, a comprehensive Shariah compliant platform for alternative investments. Designed as a "one-stop" platform primarily for single strategy hedge funds, Al Safi provides Shariah screening and arboon-sale solutions along with prime brokerage, administration, and trustee oversight within a pre-established Cayman trust framework. The Al Safi Trust was named "Best Islamic Alternative Product" at the Hedge Funds World Middle East Conference in 2009.
In 2008, DMCCA purchased a 4.99% equity position in Shariah Capital. Later that year, Shariah Capital formed a joint venture, Dubai Shariah Asset Management (DSAM), with Dubai Commodity Asset Management (DCAM), a wholly-owned division of DMCCA. DCAM, an investment company licensed by the UAE Central Bank, develops and distributes Shariah compliant, commodity-linked investment products in the UAE. The first four hedge fund strategies were funded by DMCCA in 2008 and registered on the Al Safi Trust platform. Today, two funds are marketed under the "DSAM Kauthar" brand name and open for investment: DSAM Kauthar Gold Fund and DSAM Kauthar Global Resources & Mining Fund.
The DSAM Kauthar funds have received numerous performance awards:
- Barclay Hedge, an independent hedge fund research organization with a database of over 5,800 hedge funds, has consistently ranked the DSAM Kauthar Gold Fund, Ltd. in its Top Ten of Metals & Mining hedge funds based on its monthly performance results throughout 2009, 2010, and 2011. In both 2010 and 2011, the DSAM Kauthar Gold Fund received the MENA Fund Manager Award for "Outstanding Performance and Innovation."
- The DSAM Kauthar Energy Fund was ranked among the Barclay Hedge Top Ten Energy Funds for its performance in February, 2011.