The Australian Muslim community is in need of a sharia-compliant superannuation fund, mortgage lender Muslim Community Co-operative Australia (MCCA) said.
"Australian Muslims with compulsory super have been investing for many years with no say as to where their investments went. They are in need of one that is sharia-compliant and complies with Islam," MCCA managing director Chaaban Omran said.
As a result, MCCA hopes to have Australia's first pure Islamic superannuation fund up and running within two years.
"It won't be easy, but it will be worth it in the end as it will open up Islamic super for 21 million Australians," Omran said.
He said it would be a public offer fund.
"All Australians can invest in it and it will offer choice and another risk strategy for investors," he said.
MCCA is currently putting together a project plan for the Australian Prudential Regulation Authority.
"It will include information on what makes a super fund purely sharia-compliant. This is an education process for them," Omran said.
In May, MCCA took its first steps towards expanding its wealth management capabilities, winning an Australian financial services licence.
Omran signalled that MCCA would also look to set up an unlisted property trust, Australian equities fund and international equities fund in the near future.
"ASIC is taking the time to find out what makes our funds sharia-compliant," he said.
"This type of investing gives us a stringent base to select very reliable stocks, more effective than many other ethical investors."
MCCA was established in 1989 for the sole purpose of offering sharia-compliant products.
