Wahed X Sdn Bhd, which aims to offer fully Shariah-compliant fractionalised real estate investments through equity crowdfunding (FREC), has been selected for the Securities Commission Malaysia’s (SC) inaugural regulatory sandbox.
The company sees FREC as one of the more promising ways to democratise access to real estate by breaking down properties into smaller, investable units.
Wahed enables investors to participate from as low as RM500 through fractional ownership, which allows them to earn rental income and capital gains in proportion to their contribution.
Wahed also defines holding periods upfront, typically around five years, to address the liquidity problem traditionally associated with property, says Wahed Malaysia director and chief executive officer Zayan Yassin. It means investors can sell their units after five years, giving them a predictable exit window.
With a much smaller investment amount, investors also have the choice to spread their capital across multiple properties in different locations and developments.
“Wahed pools the collective buying power of many investors, raising significant capital to tap into premium as well as undervalued properties with better returns previously unattainable by the retail market,” says Zayan.
Wahed will partner with a panel of industry specialists ranging from independent valuers, property managers to renovators to run and manage properties efficiently.
“This has been the heart of our company’s mission to liberate this asset class from interest-bearing instruments which we believe is the main reason why houses are overvalued over time,” says Zayan.
“Products like this offer an alternative to mortgages. Through a fully shariah compliant equity model, investors participate directly with available funds, bypassing traditional financing hurdles entirely.”
Zayan expects the sandbox environment to be an ideal platform to test and refine both the offering and platform within existing regulations. The SC can maintain an oversight on the platform while the product is rolled out to the retail market.
“Ultimately this can be a well-regulated product following the guidelines of SC. Our obligation to full disclosures and transparency is paramount to ensure that information on the offering, such as independent valuations, clear fee structures, and regular updates, can help investors feel secure and informed when engaging with this asset class,” he says.
The company is one of six companies across three core themes: facilitating alternative real estate investments, fostering market vibrancy through secondary markets and spurring innovation in alternative financing.
The other companies in the sandbox are Urban NX Sdn Bhd, Kapital DX Sdn Bhd, Pitch Platforms Sdn Bhd, Virtual Economy Technology Sdn Bhd and Peer Hive (M) Sdn Bhd.
Under the sandbox, participants will receive about 12 months of live testing, beginning in January or July 2026 depending on readiness. The SC will supervise platform rollout, disclosures, operations and investor protection measures while allowing real-world experimentation.
Wahed has already launched a fractionalised real estate platform in the UK in 2024. The platform funded 11 property deals worth over RM20 million.
Wahed X is part of the Wahed group, which manages over US$1 billion (RM4.13 billion) in assets worldwide and operates wealth products including exchange traded funds, portfolio management and equity crowdfunding.