Alpaca, a US-headquartered self-clearing broker-dealer and brokerage infrastructure API, and ZAD, a Kuwait-based digital investment platform, have announced a strategic partnership to expand access to Shariah-compliant investment products.
The collaboration aims to facilitate financial access for investors seeking to align their financial growth with Islamic principles. This partnership has already resulted in the launch of Shariah-compliant Instant Funding and plans for future offerings, including Shariah-compliant margin trading, options trading, and high-yield cash accounts.
The global Islamic finance market is experiencing significant growth, with assets surpassing $5.5 trillion USD in 2024 and a Standard Chartered report forecasting a rise to $7.5 trillion USD by 2028. This growth is predominantly driven by key markets such as Saudi Arabia, Malaysia, Kuwait, and the UAE, alongside increasing demand across Southeast Asia and Africa. ZAD’s expansion initiatives, focusing on its local Kuwait market and broader Gulf Cooperation Council (GCC) markets like Saudi Arabia, underscore this market trend.
Abdullah Alotaibi, Co-Founder and Deputy CEO of Fintech Brokerage at ZAD, emphasized the importance of Shariah-compliant offerings for regional growth. “If we were a conventional investment application, we would not have reached the growth levels that we have in the past couple of years. It’s very important for the people in the region. They really appreciate it, they want it, and they’re very careful with what they buy,” Alotaibi stated. He also highlighted Alpaca’s collaborative approach, noting, “There are service providers that tell you, ‘this is what we have, take it or leave it.’ Not Alpaca. They listen to us. They understand the region well. They’re helping us offer the best possible products to our clients.”
Building Shariah-compliant infrastructure presents unique challenges. For example, the Shariah-compliant margin trading product developed through this partnership utilizes an asset-backed lending model instead of an interest-based model, aligning with Islamic law. The solutions developed using Alpaca’s Broker API are designed for scalability across other Islamic regions.
Yoshi Yokokawa, CEO and Co-Founder of Alpaca, commented on the collaboration: “We’re grateful to be innovating with ZAD in the rapidly growing Islamic finance and are excited to be their partner in delivering Shariah-compliant margin trading, options trading, instant funding, and more. Shariah-compliance is a key focus at Alpaca as we look to support and expand financial accessibility globally.”
Alpaca is a self-clearing broker-dealer and brokerage infrastructure API providing services for stocks, ETFs, options, fixed income, and 24/5 trading. The company has raised over USD170 million in funding and is supported by investors including Portage Ventures, Spark Capital, Tribe Capital, Social Leverage, Horizons Ventures, Unbound, SBI Group, Derayah Financial, Elefund, and Y Combinator. ZAD, offered by The Securities House, provides global stock market access and aims to simplify the investment and trading process for individuals adhering to Shariah principles.
Investors should be aware that all investments involve risk, and options trading carries inherent high risk, potentially resulting in significant losses.
