Hejaz Financial Review 2026: Australia's Leading Islamic Finance Provider

Overview: Australian Islamic Finance Pioneer

Australia has one of the world's most successful multicultural societies, with a Muslim population of approximately 800,000 to 900,000 people, representing around 3.2% of the total population. Despite this significant demographic, Australian Islamic finance has historically been limited and fragmented compared to the UK, where regulated Islamic banks have been operating since 2004, or Malaysia, where Islamic banking is fully integrated into the mainstream financial system.

Hejaz Financial was established to fill this gap. Its founders recognised that Australian Muslims faced unique challenges compared to their counterparts in other Western countries: not only did they lack access to halal mortgages and investment products, but they also faced the specific challenge of Australia's mandatory superannuation system, which required all employees to accumulate retirement savings in funds that typically invested in interest-bearing instruments and prohibited sectors.

Hejaz's achievement in creating a genuinely Shariah-compliant superannuation option, compliant with Australian superannuation legislation while satisfying Islamic jurisprudence, is widely regarded as one of the most significant milestones in Australian Islamic finance. Combined with its home finance and investment products, Hejaz has created the most comprehensive Islamic financial services offering available in Australia.

The 2024 announcement of a EUR 100 million (approximately AUD 165 million) financing facility from a UAE private wealth group was a landmark moment for Hejaz, providing the capital base needed to significantly scale its home financing book and begin its international expansion strategy.

How Hejaz Works

Hejaz operates as a licensed financial services company (holding an Australian Financial Services Licence from ASIC) and works with regulated superannuation trustees and banking partners to deliver its products. Unlike in the UK or Malaysia where dedicated Islamic banks hold banking licences, Hejaz operates within the Australian framework by partnering with appropriately licensed institutions while maintaining Shariah oversight through its own advisory board.

Customers engage with Hejaz primarily through its online platform and Melbourne-based office. The home finance application process involves a financial assessment, property valuation, and Shariah documentation review before co-ownership can proceed. The superannuation product integration requires customers to nominate Hejaz's fund as their chosen super fund, after which regular compulsory employer contributions are directed into Shariah-compliant investment options.

Hejaz also provides personalised financial planning services through its qualified Islamic financial advisors, helping clients navigate the intersection of Australian financial regulations and Shariah requirements — an area requiring specialist expertise not found in mainstream financial planning firms.

Products & Services

Hejaz offers a broader range of Islamic financial products than any other provider in Australia. The three core product pillars are superannuation, home finance, and investment management, supplemented by takaful (Islamic insurance) products and personal financial planning services.

Halal Superannuation

Australia's superannuation system is one of the world's largest pension systems, with over AUD 3.5 trillion in assets under management. All Australian employees must contribute 11.5% of their salary to superannuation (increasing to 12% in 2025), making it the primary vehicle through which most Australians build their retirement wealth. For Muslim Australians, this mandatory system has historically presented a profound religious dilemma: compulsory super funds typically invest in interest-bearing bonds, conventional financial stocks, and other Shariah-impermissible assets.

Hejaz's halal superannuation offering resolves this dilemma. The Hejaz Balanced Islamic Fund operates as a complying super fund under Australian law, meaning employers can direct mandatory super guarantee contributions to it, and members retain all the usual tax advantages (15% tax on concessional contributions, tax-free withdrawals in retirement for those over 60). Within the fund, all investments are restricted to Shariah-compliant assets: halal-screened equities, sukuk, and Islamic cash management products. No interest is earned or paid; no investments are made in prohibited sectors.

The performance of the Hejaz Islamic Fund is benchmarked against other balanced superannuation options. Because Shariah-screened portfolios exclude financial services companies (which form a large part of the Australian stock market, particularly the big four banks), performance characteristics differ from the ASX 200. In years when Australian banks perform strongly, the Hejaz fund may underperform; in years when banks underperform (as during periods of regulatory uncertainty or rising credit losses), it may outperform.

Use our Halal Investment Calculator to model the long-term growth of Shariah-compliant superannuation contributions and compare different allocation scenarios.

Home Finance

Hejaz's home finance product uses the Diminishing Musharakah structure, where Hejaz and the customer jointly purchase the property and the customer gradually buys out Hejaz's share through monthly payments that include both a rental component and an equity purchase component. No interest is charged or compounded at any stage.

The 2024 EUR 100 million facility from Hejaz's UAE private wealth partner was transformative for this product. Prior to this facility, Hejaz's home finance capacity was constrained by available capital, creating waiting lists and limiting the size and volume of properties it could finance. The new facility dramatically increases the book capacity, enabling Hejaz to serve significantly more customers and finance higher-value properties in expensive Australian markets like Sydney and Melbourne.

Hejaz home finance is available for owner-occupied properties across most Australian states. The minimum financing amount and property requirements are disclosed on Hejaz's website, and prospective customers are advised to check current availability in their state, as the product's reach continues to expand. Compare the total cost using our Islamic Mortgage Calculator.

Investments

Beyond superannuation, Hejaz offers Shariah-screened investment products for wealth building outside the super environment. These include access to halal equity funds, sukuk, and other Shariah-compliant instruments accessible through Hejaz's investment platform.

All investment products are screened against the same Shariah criteria as the superannuation fund: sector exclusions for prohibited industries and financial ratio screens for debt, interest income, and receivables. The Shariah board reviews and approves the investment universe on an ongoing basis, with quarterly purification of any residual impermissible income.

Hejaz's investment minimum and fee structure are disclosed during the account opening process. The platform is designed for medium to long-term investors focused on halal wealth accumulation rather than short-term trading.

Shariah Compliance

Hejaz Financial maintains an independent Shariah Supervisory Board comprising qualified Islamic scholars with expertise in Islamic commercial law. The board's mandate covers all Hejaz products: it approves new product structures, conducts ongoing compliance audits, and issues rulings on novel questions arising from the Australian regulatory environment.

The intersection of Australian law and Shariah principles presents unique challenges that Hejaz has navigated carefully. For example, Australian superannuation law imposes specific requirements on how funds are structured and managed; Hejaz's Shariah board has worked with the company's legal team to ensure that compliance with Australian legislation does not compromise Shariah integrity. Similarly, the co-ownership structure for home finance must comply with Australian property law while avoiding interest — a legal drafting challenge that required specialist Islamic finance legal expertise.

Fees & Pricing

Hejaz's superannuation fees include an administration fee (a percentage of your super balance) and an investment management fee (the management expense ratio of the underlying fund). These are competitive with mainstream balanced superannuation funds of similar size and sophistication, though slightly higher than the largest industry funds (like Australian Super or Aware Super) due to the additional cost of Shariah oversight.

For home financing, Hejaz's profit rate (the equivalent of an interest rate for comparison purposes) is disclosed upfront and is competitive with conventional Australian mortgage rates in the current environment, particularly following the capitalisation boost from the 2024 UAE facility. There are no application fees, and the overall cost structure is transparent.

For investment products outside super, fees are based on assets under management and are disclosed in the relevant Product Disclosure Statements (PDS) available on Hejaz's website. All fee disclosures comply with Australian financial services regulations, including the requirement to provide a clear fee table in the PDS.

Customer Reviews

Hejaz Financial enjoys strong brand loyalty and positive reviews within the Australian Muslim community. Customers frequently highlight the company's genuine commitment to Shariah compliance, the professionalism of its staff, and the significance of finally having a credible Islamic finance option in Australia. The halal superannuation product in particular receives strong positive feedback, as many customers had previously been unable to resolve the conflict between their compulsory super contributions and their religious obligations.

Constructive feedback typically relates to the pace of product expansion (customers wanting additional products such as halal transaction accounts, Islamic car finance, and small business finance) and occasional processing delays during periods of high demand for home finance. The 2024 UAE facility is expected to significantly reduce processing bottlenecks in home finance as the team scales.

Pros & Cons

Who Is Hejaz Financial For?

Hejaz Financial is primarily designed for Muslim Australians who want to ensure their entire financial life — superannuation, home ownership, and investments — is conducted in a Shariah-compliant manner. It is the go-to provider for Australian Muslims who are serious about Islamic finance compliance.

Ideal for: Muslim Australian employees who want to direct their compulsory super into halal investments. Those seeking Islamic home finance for property purchase in Australia. Australians wanting comprehensive halal financial planning. Ethical investors (Muslim or otherwise) wanting to exclude alcohol, gambling, and weapons from their super.

Less ideal for: Those needing full-service Islamic banking with transaction accounts and cards. Investors wanting a very wide product range of direct Shariah-compliant assets. Those outside Hejaz's current operational states for home finance.