What makes an option Sharia-aligned?
Islamic finance principles generally look for:
- No interest (riba): no fixed interest payments
- Transparency: clear terms and real underlying assets
- Permissible activities: no alcohol, gambling, weapons and similar
Whether a specific product meets these principles depends on its structure. For every option below — including pv.direct — check the details and obtain your own advice if required.
Options people in Egypt consider
1. Sukuk (Islamic certificates)
- Return: set by the terms of each issue
- Availability: limited for individual investors in Egypt
- Liquidity: often low
2. Islamic bank products
- Return: set by the bank under each product's terms
- Availability: offered by several banks
- Liquidity: depends on the product
3. Real estate
- Return: rental income (if let) plus or minus changes in value
- Sharia: generally considered permissible
- Considerations: high capital requirement, low liquidity, maintenance and tenant issues
4. Gold
- Return: depends only on price changes
- Sharia: physical gold is generally considered permissible
- Considerations: no regular income, storage costs, price swings
5. Sharia-screened stocks
- Return: variable — losses are possible
- Sharia: depends on the company; screening and follow-up are needed
- Considerations: high volatility; requires market knowledge
6. Solar participation (pv.direct)
- Return: projected annual distribution range — not guaranteed; from electricity revenue actually paid by the offtaker
- Sharia: designed to align with Sharia principles (e.g. Musharakah-style participation in a real asset); obtain your own advice or certification if required
- Exit: requests require at least 6 months notice and follow the project contract and resale process; capital return per the agreed formula, subject to contract and outstanding obligations
- Considerations: distributions depend on energy production, customer payment, costs, contract terms and market conditions
How pv.direct participation works
With pv.direct, you hold a share in a physical solar installation on a factory rooftop. Distributions come from electricity revenue that is actually paid — not from interest. The source of income is the sale of electricity, which also means that distributions depend on how the installation performs and on the offtaker's payments.
Overview table
| Aspect | pv.direct | Sukuk | Islamic bank | Real estate | Gold |
|---|---|---|---|---|---|
| Source of return | Paid electricity revenue | Per issue terms | Per product terms | Rent and value changes | Price changes |
| Return | Projected range — not guaranteed | Per issue terms | Per product terms | Variable | Variable |
| Liquidity | At least 6 months notice; contract and resale process | Often low | Depends on product | Low | Generally high |
| Regular income | Distributions per contract, not guaranteed | Per issue terms | Per product terms | Rent, if let | None |
| Main risks | Production, payment, costs, contract | Issuer and structure | Per bank terms | Market cycles, vacancy | Price swings |
Conclusion
Each option combines return source, risk and liquidity differently. Which one fits depends on your goals, time horizon and personal Sharia requirements. pv.direct participation is designed to align with Sharia principles (e.g. Musharakah-style participation in a real asset) — obtain your own advice or certification if required, and read the project contract before deciding.
Important: Projected figures are illustrative only — not guaranteed. Returns depend on energy production, customer payment, costs, contract terms and market conditions. This article is general information, not investment or religious advice.