A London Stock Exchange-listed company is set to launch an Islamic solution to help firms monetise their inventories, filling a gap in the market.

Supply@ME Capital (SYME) is one of very few companies that will offer Shariah-compliant solutions in inventory monetisation, which its CEO says there is a growing demand for.

“With the COVID situation, there are companies in several sectors in the Shariah space which have significant working capital shortfalls and needs,” said SYME CEO Alessandro Zamboni.

SYME’s competitors include Falcon Group, and Tawreeq that also offers supply chain and Shariah-compliant working capital solutions to SMEs. Newer players like Malaysia’s TFX Islamic, which launched in November, have also entered the sector.

“There are few competitors in our field in the MENA region,” said Zamboni. “Our closest competitor, Falcon Group, has a different business model.”

SYME has partnered with iMass Investment, where the UAE-based firm will work with the London company to offer Shariah-compliant funding.

iMASS will be responsible for inventory funders origination, client companies’ origination as well as SYME corporate development by supporting the operations in the UAE.

SYME’s Shariah-compliant solution was given the go-ahead by scholars Mohammed Elgari and Sheikh Yusuf Talal DeLorenzo last month, the company said in a disclosure to the LSE.

HOW IT WORKS

The Shariah solution can support companies in halal sectors with physical inventory including metal, capital goods, retail and pharmaceuticals.

The platform connects “client” companies to investors where they can sell their unused inventory for capital. The client companies keep the stock in their warehouses.

Investors fund the inventory via a Shariah-compliant securitisation scheme.

SYME’s investors are institutions as well as professionals including funds, banks and family offices. The platform is not open to retail investors.