The new product is part of a continuing trend of firms launching Shariah-compliant investment and banking products, designed to tap into the growing number of Muslims around the world. The explosion of interest in ETFs has also been well-noted, with investors increasingly attracted to these funds’ transparency, liquidity and low costs.

The firm’s chief executive, Eric Meyer, is reported to have told the publication: "With 1.5 billion Muslims and estimates of $2.7 trillion invested into Shariah-compliant investments globally, the need for Islamic ETFs is evident. Market studies indicate a shortage of Shariah-compliant investment instruments to meet the rising global demand."

Shariah Capital is reportedly also looking for partners to launch the ETF in the GCC region. "We offer our partner the opportunity to fully capitalise our relationship with the GCC institutional investors, distribution platforms and government leaders to leverage our established Shariah brand," said Shaykh Yusuf Talal DeLorenzo, the firm’s chief Shariah officer.

Shariah Capital, which was founded with the Dubai Multi Commodities Centre Authority, manages commodity funds in Dubai: the DSAM Kauthar Gold Fund, the DSAM Kauthar Enery Fund and the DSAM Kauthar Natural Resources Fund, the DSAM Kauthar Global Resources and Mining Fund and the DSAM Kauthar Commodity Fund.