Why syariah compliance 'makes business sense'

Being syariah-compliant can help businesses generate long-term returns, a panel discussion heard yesterday. That is because compliance involves adopting socially responsible practices. Mr Rushdi Siddiqui, co-founder and chief executive of Zilzar Tech, noted that companies with such socially responsible practices typically have lower funding costs, and the returns after they are listed are typically greater. A report from Arabesque Asset Management presented similar findings. It reviewed 51 academic studies and found that 88 per cent showed a positive correlation between sustainable practices and operational performance.