Mutual Funds' Founder Pays Heed to Islamic Tenets

December 23, 2007

Author: Mark Schwanhausser

Source: The Mercury News

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Nicholas Kaiser founded Saturna Capital in 1984 after being approached by Muslim investors looking to invest without violating Islamic teachings.

It's probably hard for most Americans to imagine a financial world without interest. We earn it in our savings accounts. We pay it when we shop with credit cards. In Silicon Valley, we couldn't dream of owning a home without a mortgage.

Yet devout Muslims follow strict rules about money, including a prohibition against interest known as riba. In addition, certain businesses are incompatible with Islamic law, including those involving alcohol, gambling, pornography or the production of pork.