IslamicFinanceGuru Podcasts Has The Islamic Finance Experiment Failed? What Do We Do Next? | Debate
Oct 6, 2026
Khurram Agha, an Islamic finance entrepreneur and investment professional, joins Monem Salam, Saturna Capital executive and Amana Funds portfolio manager, for a lively debate on the industry’s biggest criticisms. Is it merely conventional finance with a Sharia label? Why do halal options cost more, and why are insurance, credit, and education savings still underserved? They also explore private markets, regulation, ESG, and the innovations that could shape Islamic finance’s next decade.
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Why Zero Debt Can Create Excessive Risk
- The 30% debt threshold is a ceiling, not a portfolio target; Salam says some funds average roughly 8% debt-to-market-cap.
- Khurram Agha’s zero-debt portfolio experiment produced excessive risk and an unacceptable beta.
Islamic Finance Progress Means More Than Debt Reduction
- Industry progress includes ESG, sustainability, and maqasid-oriented investing, not only eliminating conventional debt.
- Monem Salam argues that moving a multitrillion-dollar Western market requires scale, while Muslim-majority markets may shift standards faster.
Why Halal Funds Often Cost More
- Higher Islamic fund fees mainly reflect limited scale and restrictions such as not lending securities.
- Conventional giants can charge minimal fees because Vanguard spreads fixed costs across enormous assets and earns securities-lending income.