microLEAP bases its Islamic Investment Notes on the concept of Commodity Murabahah (via Tawarruq arrangement). Tawarruq involves a purchase of assets or commodities on a deferred payment basis by way of Murabahah.

Though it is used interchangeably nowadays, Tawarruq means ‘monetisation’ and Commodity Murabahah refers to the concept of ‘cost plus profit using commodities’.

Generally, the Tawarruq terms are commonly used in the Middle-East and Commodity Murabaha more popular in Malaysia.

Tawarruq is the over-arching arrangement where multiple contract work together; Wakalah, Murabahah and Musawamah to complete the Tawarruq arrangement.

Below is the list of shariah non-compliant activities as per Securities Commission Malaysia:

1. Conventional Banking
2. Conventional Insurance
3. Gambling
4. Liquor & Liquor-related Activities
5. Pork & Pork-related Activities
6. Non-halal food and beverages
7. Tobacco and Tobacco-related activities
8. Stockbroking or Share Trading in Shariah Non-compliant Securities
9. Shariah Non-compliant Entertainment
10. Other Activities Deemed Non-compliant According to Shariah

Anything outside the non-compliant list will generally fall within Shariah compliant activities.

microLEAP’s Shariah Advisors will have final say on what is considered Shariah on microLEAP’s platform.

Anyone who is a registered P2P Investor on microLEAP’s platform may invest in our Islamic Investment Notes. As long as you want to invest in businesses and industries that are both ethical and follow the principles of Shariah, please give our Islamic Investment Notes a try!