A major Islamic investment fund operated by banking giant HSBC has purchased $38.3 million (£29.7 million) worth of shares in controversial U.S. technology company Palantir, despite its partnership with the Israeli military during the Gaza genocide.
An examination of HSBC’s own financial statements by 5Pillars has confirmed that its Shariah-compliant Islamic Global Equity Index Fund purchased $38.338 million worth of shares in Palantir Technologies during the first six months of 2026.
According to HSBC’s interim financial report, as of June 30, 2026, the fund held 295,115 Palantir shares valued at $34.43 million, representing 0.42% of the fund’s total net assets.
The fund is widely used by British Muslims through workplace pension schemes, including schemes run by Aegon, Aviva and Fidelity.
The report explicitly describes the fund as Shariah-compliant and states that its investments must adhere to Islamic principles established by an independent Shariah committee. However, it also specifies that members of the committee have no influence over individual investment decisions.
Palantir is a U.S. technology company that develops software used by governments, security agencies and militaries to analyse large datasets and support intelligence and military operations.
In January 2024, the company announced a strategic partnership with Israel’s Ministry of Defence to supply technology in support of the country’s war effort. Palantir said it was proud to stand alongside Israel.
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The company’s chief executive, Alex Karp, also attracted controversy in 2025 when he responded to a heckler who claimed Palantir’s technology was killing Palestinians by saying: “Mostly terrorists, that’s true.”
Business with Palantir considered haram
Reacting to the story, Shaykh Ishaq Tauqir told 5Pillars: “It is not allowed for Muslims to invest in companies or that deal in the oppression and killing of Muslims. Whilst this should not need evidence, Allah the Almighty says, ‘And do not cooperate in sin and transgression’ (وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِ), rather they should be boycotted and campaigned against.”
Israel’s war on Gaza has killed more than 74,000 Palestinians, including at least 21,000 children, and wounded more than 175,000 others, according to Palestinian health authorities. The true death toll is likely higher, with victims still buried beneath the rubble and Gaza’s healthcare system devastated.
The scale of the killing and destruction has fuelled global outrage, mass protests and mounting international condemnation, with UN human rights officials warning of potential war crimes and calling for accountability.
Despite a ceasefire announced in October 2025, Israeli attacks have continued, claiming more than 1,400 Palestinian lives since it took effect.
HSBC and Palantir did not respond to press requests for comment.
