Does Shariah-compliant investment involve more risk than conventional investment?

With any type of investment, risk is determined by several factors. Shariah and conventional investments need to be evaluated using the same risk management techniques such as analyzing the business plan of the project, the track record of the one seeking financing in terms of cash flow as well as debt repayment, etc. For investments to be qualified as Shariah-compliant however, there is an extra level of analysis that must be carried out to ensure the businesses that are seeking funding are adherent to the principles of Shariah. Investment in businesses involved in non-Shariah compliant industries or commodities, such as arms, gambling, alcohol, conventional banking or insurance, non-halal food or beverages, non-Halal entertainment and more, is not permitted by Shariah.