April 15th, 2024– By Layla Nouri, Financial Art Review
In a move that may well reshape the conversation around ethical investing, the London Art Exchange (LAX) has launched a Shariah-compliant art investment portfolio—and early signs point to a seismic shift already underway. What began as a quietly implemented structural adjustment to meet a growing wave of investor demand has turned into one of the most talked-about developments in alternative asset management this year.
From West London retail clients to institutional groups across the Gulf, investors are pouring in. Their motivation? The promise of a tangible, ethically structured investment that not only adheres to Islamic finance principles, but also competes on par with traditional financial instruments in terms of returns.
A Structural Shift in a Timeless Market
The art world is no stranger to exclusivity, long-term value, or cultural cachet. What it has lacked, until now, is clear alignment with the specific frameworks required for Shariah-compliant investing. That changed when London Art Exchange introduced a new investment model rooted in Islamic financial ethics, eliminating interest-based mechanics and speculative dealings.
Rather than rely on debt, leverage, or short-selling, the LAX model is built around the acquisition and appreciation of tangible artwork—often accompanied by revenue-generating royalty rights. These are real assets, held by investors outright, with no ambiguity about ownership, income generation, or compliance.
“Our systems were already engineered around transparency, capital growth, and asset-backed security,” says one advisor familiar with LAX’s internal restructuring. “The transition to full Shariah-compliance was a natural evolution.”
A Surge of Interest from the GCC and Beyond
While art investment has long been viewed as the preserve of European and North American collectors, the last 18 months have told a different story. According to internal sources, nearly 40% of new sign-ups at LAX since Q3 2024 have come from clients based in the UAE, Saudi Arabia, and Qatar—or from diaspora communities in the UK with strong roots in the Islamic world.
The attraction is twofold. First, the portfolios provide a rare combination of ethical credibility and financial ambition. Second, the gallery’s positioning in Soho and its reputation for working directly with artists—rather than simply reselling blue-chip works—gives clients a sense of influence over both narrative and value creation.
“We’re not talking about speculative trading,” says a London-based wealth manager whose clients recently onboarded with LAX. “This is about investing in curated, ethical creativity with clear forward planning. It’s surprisingly sophisticated.”
Technology Meets Tradition
One of the key components fueling the gallery’s growth—particularly in the Middle East—is its proprietary backend platform. Each client receives secure access to a digital portal offering real-time updates on artwork appreciation, print sales, and investment documents. For institutional clients managing multiple holdings, this provides a new level of visibility and compliance assurance.
LAX’s tech-driven approach also makes it easier to apply forensic due diligence—especially crucial for family offices and Shariah boards who must vet assets in detail.
Each artwork added to a portfolio is accompanied by an in-house ethical audit and valuation report, ensuring that no speculative pricing or haram-linked associations are involved. A growing number of artworks are also created exclusively for the Shariah-compliant portfolios, further enhancing alignment.
Why the Art World Is Watching
In an industry that often moves at a glacial pace, the response to LAX’s initiative has been striking. Art publications from New York to Dubai have noted the gallery’s rise with curiosity. Several former critics of art-as-investment have shifted their stance, particularly when faced with a system that delivers measurable returns without financial ambiguity.
The London Art Exchange has always positioned itself at the intersection of creativity and commerce. Now, it appears to have added a third pillar: conscience.
And that, according to insiders, is what makes this move so disruptive. While many galleries speak about ethics in vague terms, few have restructured their model to serve faith-based communities with specific legal and moral requirements.
From Print Royalties to Long-Term Exits
What makes the offering even more compelling is its built-in structure for dual-income streams. In addition to potential capital appreciation, many of the works selected for Shariah portfolios come with print royalty rights. Investors maintain exclusive ownership of the original piece while benefiting from a 45% share in every limited edition print sale.
In a traditional gallery model, such royalties are often reserved for the gallery itself or the artist. But LAX has inverted this norm, placing the investor at the center of the value chain. It’s a move that has caught the attention of retail investors hungry for low-effort, steady income.
The model also includes pre-arranged exit strategies, usually within 18–24 months, where corporate buyers (such as boutique hotels or real estate developers) acquire selected artworks at appreciated rates. This ensures clients aren’t left wondering how or when to sell.
“We see it as a hybrid between a luxury asset acquisition and a structured exit fund,” says one Dubai-based investor who recently acquired a piece by Gabrielle Malak through the gallery. “It gives us peace of mind—and that’s what we look for in faith-aligned investing.”
Building Momentum, Artist by Artist
While many large galleries stick to legacy names, LAX has built its reputation on developing exclusive relationships with fast-rising contemporary artists. Among the most in-demand names featured in the Shariah portfolio are Pierre Simone—a Basquiat-inspired Haitian artist whose works are increasingly seen as cultural timepieces—and Gabrielle Malak, a North African-born painter whose work blends classical technique with spiritual symbolism.
These aren’t just decorative pieces—they’re layered with meaning, meticulously curated, and positioned for growth. LAX’s in-house curatorial team works closely with partner institutions and online platforms to build an artist’s profile, drive demand, and enhance resale value.
It’s an ecosystem, not a transaction. And in that ecosystem, faith, culture, and financial security appear to be converging.
The Next Frontier for Islamic Finance?
As of Q1 2025, London Art Exchange reports that nearly 120 Shariah-compliant portfolios have been created under this model, ranging from £5,000 retail entries to £250,000 institutional placements. The gallery expects this number to double by the end of the year.
It’s too soon to say whether other galleries will follow suit, but the signals are clear: ethical investing is evolving, and alternative assets are no longer the fringe.
London Art Exchange’s Shariah offering may well mark a watershed moment—both for Islamic finance and for the global art economy. By fusing tradition with transparency, it provides a blueprint not just for how to invest, but why.
As the demand for spiritually aligned investing grows, one thing is certain: the future of art investment may be far more inclusive—and far more intentional—than anyone expected.