How to Start Investing with Small Capital & Sharia-Compliant

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Funding Souq Editorial Team
Tech Writer
Dec 17, 2023
Funding Souq’s editorial team comprises experienced finance and investment professionals that are on a mission to fuel SME growth, create jobs, and drive the economy forward. They aim to share their extensive experience and industry know-how to empower entrepreneurs and investors alike.
Dec 17, 2023
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Sharia-Compliant investing, also known as Islamic Finance, adheres to principles outlined in the Quran and Hadith.


It avoids practices such as interest (riba), unreasonable uncertainty (gharar), and prohibited activities (haram).


Instead, it promotes profit and loss sharing and asset-backed transactions, ensuring investments align with Islamic ethics.


In this guide , we will explore accessible avenues for individuals with small capital to participate in ethical and Sharia-compliant investments.


what are the sharia-compliant investment options with small capital?


1. Gold


Investing in gold is a highly accessible option for those with small capital. It aligns with Sharia principles and can be done through Exchange-Traded Funds (ETFs) offered by various platforms.


Gold investments offer a hedge against inflation and economic instability, making them an attractive, low-ticket option for maintaining portfolio stability.


2. Debt crowdfunding


Debt crowdfunding stands out as a viable low-ticket investment choice. Investors act as lenders, providing loans to individuals or businesses.


This approach generates returns via periodic payments and the eventual repayment of the principal amount, offering a steady income stream for investors.


What are the distinct advantages debt offered by crowdfunding ?


Accessible Starting Point


It requires minimal capital, with entry values as low as AED100, making it inclusive.


Steady Returns


Investors receive predictable periodic returns, in line with Sharia principles, making it a reliable income source.




This method doesn't demand in-depth financial expertise, making it user-friendly, even for beginners.


Ethical Investment


It aligns with Sharia principles, ensuring ethical investment practices.




Investors can spread their capital across various loans, reducing risk and enhancing potential returns.


Compounding Growth

Consistent monthly investment can lead to compounding returns, gradually growing your capital.


Read more about: How Crowdfunding Can Help Investors & SMEs ?


3. Sukuk (Fixed-Income)


Sukuk, or Islamic bonds, provide investors with steady returns while adhering to Sharia principles.


These instruments are available for investment through specific platforms specializing in Sharia-compliant financial products.


Sukuk investments offer a predictable income stream, making them suitable for risk-averse investors with small capital.


4. Crowdfunding Buy-to-Let Properties


Crowdfunding buy-to-let properties offer a hands-off, Sharia-compliant investment approach.


Investors pool funds to purchase and manage properties, generating rental income and potential capital appreciation.


While returns may be slightly lower due to management fees, this investment option is accessible to those with small capital and provides exposure to the real estate market.


5. Islamic Index Funds


Islamic Index Funds offer diversified exposure to the stock market while adhering to Sharia principles.


These funds passively track Sharia-compliant versions of key stock indexes and sub-indexes, reducing risk by spreading investments across multiple securities.


It's a viable low-ticket option for investors seeking stock market participation with small capital.


6. Sharia-Compliant Exchange-Traded Funds (ETFs)


Sharia-compliant ETFs, traded on recognized stock exchanges, provide a cost-effective way to access various stock markets.


These ETFs aim to replicate the returns of Sharia-compliant equity and sukuk indices, offering investors a convenient and low-cost entry into Sharia-compliant stock market investments.


7. Small Business


Investing in small businesses can be profitable and is accessible for those with small capital. Look for businesses that require minimal day-to-day work or can be automated, ensuring alignment with Sharia principles.


Acquiring businesses with a reasonable net profit multiple can provide a potential income stream, although this option may require higher initial capital than others on this list.


8. Stocks


Investing in individual shares or Sharia-compliant funds managed by fund managers who adhere to Sharia principles is an option for those with small capital.


Ensure that the chosen fund is certified as Sharia-compliant. Several platforms offer such funds, making them accessible to a broader range of investors.


While this option offers stock market exposure, it may require more significant capital than others listed here.


9. Equity Crowdfunding


Equity crowdfunding presents the opportunity to receive ownership stakes or equity-like arrangements in start-ups, potentially yielding significant returns.


However, this option may require more substantial initial investments and involve higher risk levels. It's suitable for investors with more capital to allocate and a higher risk tolerance.


10. Start-ups


Investing in start-ups can yield high returns but often requires significant capital and carries higher risk.


Accessing the best start-ups typically requires valuable connections. While it's a viable investment option, it may not be the most accessible for those with small capital.




Among the array of Sharia-compliant investment options we've explored, debt crowdfunding stands out as an ideal choice for investors with small capital and minimal investment knowledge.


Image Credit: Photo by Kelly Sikkema on Unsplash

The post is for educational purposes only and the Firm does not directly or indirectly provide these services. Funding Souq KSA is regulated by the Saudi Central Bank (SAMA). This communication is not directed at or intended to be acted upon by any Person in the DIFC.

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