NEW YORK, March 27 - IslamiQ.com, a finance and investment Internet portal that adheres to Islamic principles, said on Monday it has launched its services, and is preparing for a second round of funding for about $50 million.
The company, which include banking, finance and insurance products, hopes to list on Nasdaq or the London Stock Exchange within the next year. It targets investors that already have their money in the Islamic banking system or investors that currently have their money in the conventional system.
According to Shari’ah law, an Islamic legal principle, trading and profits are allowed, but Muslims are prohibited from earning interest.
Shari’ah law also forbids investments in conventional financial institutions because they earn interest on holdings. The law also prohibits drinking and gambling, so investments are not permitted in those areas.
Social obligations must also be combined with commercial considerations, and money must be productive in society, according to religious law.
``With the Islamic capital market currently worth $150 billion, with growth forecast at 30 percent per annum as well as an estimated 94 million Muslim Internet users by 2002, there is a very real demand for IslamiQStocks.com and IslamiQMoney.com,‘’ said Chief Executive Officer Hasnita Dato Hashim.
The portal’s revenue stream will be comprised of advertising, trading revenues, referral fees, subscription and management fees.
In addition to Muslims in the Middle East, the site hopes to attract users from countries with large Muslim populations, including the United States, the United Kingdom, Germany, France and Holland.
The company said its strengths reside in strategic alliances in place throughout the Middle East banking sector.
IslamiQ.com has raised $6 million to launch the portals and has received backing from International Investor of Kuwait, and the Jeddah, Saudi Arabia-based Dallah Al Baraka Group.
It has two vertical portals: IslamiQMoney.com and IslamiQStocks.com.