# HSBC ‘sharia-compliant’ fund to exclude arms companies after Israeli-linked firms exposed

- URL: https://talkfuse.com/story/hsbc-sharia-compliant-fund-to-exclude-arms-companies-after-israeli-linked-firms-exposed/
- Published: 2026-11-11T12:47:33+00:00
- Updated: 2026-11-11T13:35:24+00:00
- Original publisher: Middle East Eye (publisher lean: Left)
- Original article: https://www.middleeasteye.net/news/hsbc-sharia-compliant-fund-exclude-arms-companies-after-spending-100m-israeli-military-linked
- Topics: Business, Companies, Markets, Middle East, World

## Key points

- HSBC’s Islamic fund is expected to divest from several defence firms.
- Its benchmark will exclude companies with more than 5 per cent military exposure.
- The rules follow scrutiny of investments linked to the Israeli military.

## Summary

HSBC’s Islamic Global Equity Index Fund is expected to sell shares in major defence and military-related companies after its benchmark tightened its rules. The change follows reporting that the fund had bought more than $100 million in shares in firms linked to the Israeli military, raising questions about how its investments aligned with its sharia-compliant designation.

The S&P Global 1200 Shariah Select Index will apply the new rules from 23 November, excluding companies with more than 5 per cent of revenue from areas including military contracting and specified weapons. The fund, which passively tracks the index and is overseen by Islamic scholars, held shares in RTX, Honeywell, Rolls-Royce, BAE Systems and Palantir; the first four are expected to be excluded, while the article says the effect on Palantir is likely given its military contracting links.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.