For investors in the Gulf Cooperation Council (GCC), aligning financial growth with personal values, particularly those aligned with Islamic principles, can be a challenge. Many traditional investment platforms may not fully meet their needs, leaving a significant segment of the population feeling underserved. This may lead them to compromise on their deeply held religious principles, or to simply forego investment opportunities altogether.
ZAD is a Kuwait-based investment platform, offered by The Securities House, that is challenging the status quo, proving that investing can be both accessible and Shariah-compliant. We recently spoke with Abdullah Alotaibi, ZAD’s Co-Founder and Deputy CEO of Fintech Brokerage, about ZAD’s vision to bring fully Shariah-compliant investment products to the GCC and Middle East (ME).
From Passion Project to Regional Powerhouse
ZAD was founded in 2020 during the pandemic as a passion project by the three co-founders, Abdullah Alotaibi, Abdulrahman Alkharafi, and Abdullah Alansari. While originally a prototype robot advisory, they quickly pivoted to a focus on trading, leveraging the founder's backgrounds in the industry. Their first release was Shariah-compliant US stocks and ETFs with a clear mission: to make investment an accessible concept and viable choice for people who adhere to the principles of Shariah, also known as Islamic principles.
Since their launch, ZAD has seen incredible growth. Abdullah says one of the reasons for this growth is their core value of having a user-centric business model that is rooted in understanding and serving their community: “We appreciate our clients. We give them time. We give them education. We're not a corporation that's just trying to make money fast. We care about our clients a lot.”
This philosophy has resonated deeply, driving their rapid ascent. Now, ZAD is applying that same customer-centric, Shariah-compliant approach to their product development and global expansion.
Pioneering Shariah-Compliant Products with Alpaca’s Broker API
ZAD's unwavering commitment to building Shariah-compliant products is another reason for their remarkable growth in the region. Akin to ethical investing, Shariah-compliant investing prohibits putting money into certain sectors, like gambling or alcohol, and forbids any element of interest in transactions. By building products with this in mind, ZAD ensures investment strategies and opportunities align with the religious and personal values of their clients.
With many investors in Kuwait and the surrounding regions only willing to invest in Shariah-compliant products, it becomes a powerful differentiator. As Abdullah explains, "if we were a conventional investment application, we would not have reached the growth levels that we have in the past couple of years. It’s very important for the people in the region. They really appreciate it, they want it, and they’re very careful with what they buy."
ZAD has partnered with Alpaca to build these products, including Shariah-compliant Instant Funding, which was recently launched. They are also collaborating to deliver margin trading, options trading, and high-yield cash accounts*, making them one of the leading platforms to offer these products in a Shariah-compliant manner.
While building Shariah-compliant infrastructure has presented unique challenges, the solutions developed with Alpaca’s Broker API are scalable across other Islamic regions. For instance, the margin trading product is an asset-backed lending model that is not interest-based, adhering to Islamic law.
Abdullah also praises Alpaca for being incredibly thoughtful, highly responsive, and flexible throughout the process. "There are service providers that tell you, ‘this is what we have, take it or leave it.’ Not Alpaca," says Abdullah. "They listen to us. They understand the region well. They're helping us offer the best possible products to our clients. I cannot say anything but good things about Alpaca."
This collaboration, built on shared goals and a dedication to innovation, has enabled ZAD to navigate complex Shariah requirements and bring groundbreaking products to market.
Ambitious Growth and a Holistic Future
ZAD has ambitious goals for continued growth across the GCC and MENA regions, especially in countries where the target audience adheres to Islamic law. Their plans include:
- Regional Expansion: They are actively pursuing licensing in other key countries like the United Arab Emirates (UAE) and Qatar, with plans to file for licensing in Saudi Arabia next year. They also have their sights set on less penetrated but potentially lucrative markets like Turkey, Syria, and Egypt.
- New Market Access: They are continuously looking to offer access to more international markets, including Saudi Arabia, through their partnership with Alpaca. They are also strengthening their access to markets in the GCC.
- 24/5 Trading: Beyond just revenue, ZAD remains committed to providing a holistic platform. This includes being first-to-market with features like 24/5 trading**, demonstrating their commitment to client convenience.
- Strategic Advantage: The nature of their product approvals significantly lowers expansion costs and eases entry into new markets where there is a strong interest in Shariah-aligned investments, including parts of Africa and East Asia.
- Product Expansion: While their core focus is building investment products, they also are listening to customer demand who have requested products like bank accounts and credit cards.
Building this Shariah-compliant platform is a huge opportunity for ZAD to service more than just Kuwait; "Promoting it to customers is the easy side of it. There are people who never invest their money unless it's Shariah-compliant. They won't. They'll keep their money in the bank. That’s why the products we’re building are so important; it is a solution that is from the region and for the region."
"We’re grateful to be innovating with ZAD in the rapidly growing Islamic finance and are excited to be their partner in delivering Shariah-compliant margin trading, options trading, instant funding, and more. Shariah-compliance is a key focus at Alpaca as we look to support and expand financial accessibility globally," says Yoshi Yokokawa, CEO and Co-Founder of Alpaca.
By prioritizing client values, innovating with Shariah-compliant products, and leveraging the collaborative strength of their partnership with Alpaca, ZAD is not just building a financial platform but access to financial freedom.
About Alpaca
Alpaca is a US-headquartered self-clearing broker-dealer and brokerage infrastructure for stocks, ETFs, options, crypto, fixed income, and 24/5 trading – raising over USD170 million in funding. Alpaca is backed by top-tier investors globally, including Portage Ventures, Spark Capital, Tribe Capital, Social Leverage, Horizons Ventures, Unbound, SBI Group, Derayah Financial, Elefund, and Y Combinator.
Alpaca does not make any representation that its products or services are Shariah-compliant. Customers are solely responsible for determining whether any offering meets their own Shariah requirements.
Alpaca Securities LLC is not affiliated with The Securities House KSCC ("TSH") or the ZAD App (“ZAD”), and neither is responsible for the liabilities of the other.
The content of this blog is for general informational purposes only. All examples are for illustrative purposes only.
The testimonials, statements, and opinions presented on the website are applicable to the specific individuals. It is important to note that individual circumstances may vary, and may not be representative of the experience of others. There are no guarantees of future performance or success. The testimonials are voluntarily provided and are not paid, nor were they provided with free products, services or any other benefit in exchange for said statements.
Options trading is not suitable for all investors due to its inherent high risk, which can potentially result in significant losses. Please read Characteristics and Risks of Standardized Options before investing in options.
*Alpaca Securities offers a cash management program pursuant to the FDIC Bank Sweep. Customer funds are treated differently and are subject to separate regulatory regimes depending on whether customer funds are held in their brokerage account or within the FDIC Bank Sweep. Specifically, Alpaca Securities is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per deposit against the failure of an FDIC member bank. Customer funds held in brokerage accounts are SIPC insured, but are not eligible for FDIC insurance coverage. Funds maintained in the FDIC Bank Sweep are intended to be eligible for pass-through FDIC insurance coverage, but are not subject to SIPC coverage. FDIC insurance coverage does not protect against the failure of Alpaca, Alpaca Securities, or any of its or their affiliates and/or malfeasance by any Alpaca or Alpaca Securities employee. Program banks that participate in the FDIC Bank Sweep are not members of SIPC and therefore funds held in the Program are not SIPC protected. Please see alpaca.markets/disclosures for important additional disclosures regarding Alpaca Securities brokerage offering as well as FDIC Bank Sweep terms and conditions.
**Orders placed outside regular trading hours (9:30 a.m. – 4:00 p.m. ET) may experience price fluctuations, partial executions, or delays due to lower liquidity and higher volatility. Orders not designated for extended hours execution will be queued for the next trading session. Additionally, fractional trading may be limited during extended hours. For more details, please review Alpaca Extended Hours & Overnight Trading Risk Disclosure.
All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. There is no guarantee that any investment strategy will achieve its objectives. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.
Securities brokerage services are provided by Alpaca Securities LLC ("Alpaca Securities"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology and services are offered by AlpacaDB, Inc.
This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Alpaca Securities are not registered or licensed, as applicable.
