A values-driven future: how Shariah investing is shaping the next generation of wealth

A values-driven future: how Shariah investing is shaping the next generation of wealth

Article published on 17 April in MEA Finance Magazine.

Christopha Lalandre, senior executive officer at Lombard Odier Abu Dhabi Global Market Branch makes an emphatic case for the importance of awakening to the fact that Shariah Investment and Wealth Management is not a niche or specialist zone within the world of finance, but one that now demands day-to-day attention from investment manager.

key takeaways.

  • Islamic finance is increasingly converging with sustainable and ethical investing, positioning itself as a forward-looking model that connects capital with purpose
  • High-net-worth investors aged 18-40 in the Middle East are prioritising Shariah-compliant investments, reflecting a deeper commitment to values-based wealth management
  • Shariah investing demonstrates that strong financial performance can coexist with ethical principles, offering a credible model for the future of mainstream investing.

There’s a quiet revolution reshaping the investment world. It’s not driven by hype, speculation or the latest digital trend, but is being led by values – specifically, those embedded in Shariah-compliant finance.

While it still represents a modest share of global assets under management, Islamic finance is growing fast, and with intention. It’s not just expanding across Sukuks, equities and ETFs. It’s also finding alignment with something much bigger: a global movement toward sustainability, ethical investing, and long-term impact. In this convergence, we see a glimpse of the future of wealth management.

While it still represents a modest share of global assets under management, Islamic finance is growing fast, and with intention

Islamic finance is not playing catch-up, it's leading the way

Forecasts from S&P Global estimate Sukuk issuance could reach USD 200 billion in 20251, up sharply from USD 140 billion in 20202. This is not a marginal uptick, but signals deep structural growth, driven by the GCC countries, Malaysia, Indonesia, and increasingly by investors who want their capital to serve more than short-term gain.

Major infrastructure developments in these countries, along with new industrial investments, are increasing financing requirements. The Sukuk market is well positioned to benefit and grow in response. New opportunities are also emerging in the Islamic finance market through sustainable investments and renewable energy projects. In 2021, ReNIKOLA Solar issued a USD 83 million green Sukuk to fund solar power in Malaysia3. This year, UAE-based Tabreed raised USD 700 million via a green Sukuk to finance sustainable cooling4.

These are not just examples. They are proof that Islamic finance is already solving some of the biggest challenges facing economies today. It’s capital in service of purpose. And the market is responding with appetite, not hesitation.

Read also: Why expats and wealth managers are drawn to the Middle East

The next generation isn’t waiting

If you want to know where the future of wealth is headed, ask the people inheriting it.

In a recent Lombard Odier survey of high-net-worth individuals across the Middle East, 67 percent said it was important for their investments to comply with Shariah principles5. Among investors aged 18 to 40, that figure remains just as high. In fact, more than half of next-gen wealth in the region is already allocated to Shariah-compliant assets.

download our survey.

What’s driving the investment decisions of high-net-worth (HNW) entrepreneurs, investors and heirs in the Middle East today? Discover the views of younger HNW individuals on investing, succession, family governance and more.

This is not a symbolic gesture. It’s a redefinition of what wealth means and how it should be managed. Younger investors are not simply choosing faith-aligned investing because it’s expected of them. They are choosing it because it reflects who they are, what they believe, and how they see the future.

This is a generation that will not separate profit from purpose. And the market must take note.

When values and value align

There is often a false divide in finance: purpose vs performance, ethics vs economics. But Shariah-compliant investing is rewriting that script. The principles that govern Islamic finance, such as stewardship, fairness, risk sharing and long-term thinking, mirror the values underpinning sustainable investing. This is not merely a point of similarity. It represents a natural alignment of philosophies that view capital as a force for both prosperity and positive impact.

The principles that govern Islamic finance, such as stewardship, fairness, risk sharing and long-term thinking, mirror the values underpinning sustainable investing

At Lombard Odier, we’ve been building on this alignment for over a decade. In 2012, we launched our first Shariah-compliant managed portfolios. Since then, we have developed a full suite of Islamic investment solutions, including discretionary mandates, a Shariah Global Equity Fund with ESG filters launched in partnership with SEDCO Capital, and a multi-asset Shariah Certificate.

In June 2025, we introduced the Lombard Odier Multi-Asset Balanced Fund, officially certified by Amanie Advisors. This actively managed strategy reflects our long-held conviction that performance and principle can and should go hand in hand. The fund seeks to balance growth with capital preservation, investing in a blend of Sukuks and Shariah-approved equities.

The opportunity ahead

Islamic finance is no longer a niche, and it’s certainly not a compromise. It is a sophisticated, principle-driven framework for investing that aligns deeply with the moral and environmental concerns of a global investor base.

If wealth managers want to stay relevant, let alone lead, they must build more inclusive, value-aligned strategies. They must stop viewing Islamic finance as a specialised request and start recognising it as a blueprint for the broader shift we’re seeing in finance.

Because Shariah investing doesn’t sit outside the mainstream. Increasingly, it is the mainstream, especially among the generation that will define the future of capital.

important information

This is a marketing communication issued by Bank Lombard Odier & Co Ltd (hereinafter “Lombard Odier”).
It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a marketing communication.

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