Shariah-compliant investment funds : how does globalization restricted its social roles? the case of Saudi Arabia

Abstract EN

The main objective of this paper is to develop and report an in-depth insight of the effects of globalization on the role of Shariah-Compliant Investment Funds (SCIFs) in promoting social justice by interviewing key stakeholders.

The research critically evaluates the purposive role and characteristics of SCIFs in KSA.

It examines the role of the financial issues, investors, and regulators, relative to SCIFs and the effects of globalization.

The analysis identifies that the absence of social justice may be due to the global economic influence of the West, and its emphasis on financial returns, which has permeated through to SCIFs through globalization.

Interviewees did not link SCIF practices with social justice Islamic concepts even though they believed in the importance of social justice and, as a result, SCIFs are not achieving their social justice objectives, as shown from their screening criteria.

SCIFs should take advantage of globalization and avoid its negative impact.

Therefore, this paper has policy implications and provide recommendation to improve the practice of SCIFs in KSA toward achieving social justice.