IslamicFinance.de

The use of artificial intelligence (AI) has made it easier for retail investors to access investments that adopt environmental, social and governance (ESG) principles. According to Omar Selim, CEO of Arabesque Asset Management, technology is democratising ESG investing. Nowadays, both large and small financial institutions are able to extract and analyse ESG-related data using AI, which is cheaper and faster. One advantage of using AI is the ability to tap a larger pool of information and monitor the ESG performance of companies on a daily or monthly basis. Selim believes that ESG investing will gain more traction in the future as people’s views on investments change. More and more people want to invest in companies that have good corporate governance and sustainable business models.

Asset management firm Arabesque has received regulatory approval to start operations with its value-based investment strategies - the latest addition to Britain's Islamic finance sector. The London-headquartered firm now has in place a team of 18 staff, with additional offices in Frankfurt and New York, chief executive Omar Selim said. Moreover, Arabesque is backed by an advisory board of ethical industry professionals. The firm is backed by capital from its own management and has commitments from several institutional investors. Arabesque plans to establish funds in Luxembourg and will offer managed accounts as well.