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​INVESTMENT POLICY​

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​​Introduction

Imam Mohammad Ibn Saud Islamic University (IMSIU) is committed to responsible and ethical investment practices that align with its core values, as well as the principles of sustainability and climate action. This investment policy outlines the guidelines that govern the university's investment decisions, taking into account the local, regional, and global context, while ensuring the preservation of Islamic principles..

Guidelines

Shariah-Compliant Investments:

a. IMSIU will strictly adhere to Shariah principles in all its investment decisions. Investments must comply with Islamic financial guidelines, avoiding prohibited activities such as usury (riba), gambling (maisir), and investments in industries deemed harmful or unethical.

b. The university will appoint a qualified Shariah board or advisor to oversee and ensure the compliance of all investment activities.

Environmental, Social, and Governance (ESG) Considerations:

a. IMSIU will integrate environmental, social, and governance considerations into its investment analysis. Investments will be evaluated based on their potential positive impact on society and the environment.

b. The university will seek out investment opportunities in companies and projects that demonstrate responsible environmental practices, ethical labor standards, and strong corporate governance.

c. Investments in companies involved in sectors such as renewable energy, sustainable infrastructure, and social impact initiatives will be given priority.

Climate Change and Sustainability:

a. IMSIU acknowledges the urgent need to address climate change and its impact on the planet. Therefore, the university will actively seek to invest in projects and initiatives that contribute to climate resilience and sustainability.

​b. Investments in carbon-intensive industries and companies with a high carbon footprint will be avoided or phased out over time, in alignment with the university's commitment to climate action.

Risk Management:

a. IMSIU will employ robust risk management practices to assess and mitigate the potential risks associated with its investments.

b. Investments will be thoroughly analyzed for financial stability, long-term viability, and adherence to ethical standards to minimize exposure to financial and reputational risks.

Engagement and Advocacy:

a. The university will actively engage with companies and organizations in which it holds investments to advocate for responsible business practices, sustainability improvements, and greater transparency.

b. IMSIU will participate in initiatives and shareholder actions that promote positive change and align with the university's values and objectives.

Diversification:

a. IMSIU will maintain a well-diversified investment portfolio to spread risks and ensure financial stability.

b. The university will consider a mix of asset classes, regions, and industries to achieve a balanced and sustainable investment portfolio.

Conclusion

Imam Mohammad Ibn Saud Islamic University (IMSIU) is committed to making investment decisions that are not only financially prudent but also ethical, sustainable, and in line with Islamic principles. By adhering to this investment policy, IMSIU aims to support positive social and environmental outcomes while contributing to a more sustainable and responsible global economy. ​