While applying to become IDE-compliant is a logical step for companies with businesses that are not operating against Islamic principles, Gabriel says it is not as easy as it sounds. For starters, the compliance process can cost up to RM50,000. This may not be something that a start-up at seed round can afford.
“The second thing is that there are certain things that may make the documentation requirements more difficult. For instance, when we did our application, we had to have the ability to host our platform locally. Before that, it was hosted on Amazon Web Services when we started in the UK.
“We were already familiar with Amazon’s ecosystem, so switching to a local partner required a bit of modification and understanding of their system. While it did also cost about 50% more, our chief technology officer was committed to making sure that we could be IDE-compliant. He wanted it to provide validation and confidence in what he was building,” says Gabriel.