By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    US-China talks resume as Trump hails ‘total reset’ in trade relations
    US-China talks resume as Trump hails ‘total reset’ in trade relations
    May 11, 2025
    UK plans to end ‘failed experiment’ in immigration
    UK plans to end ‘failed experiment’ in immigration
    May 11, 2025
    Vladimir Putin’s offer of direct talks with Ukraine is the latest attempt to avoid committing to a 30-day ceasefire | World News
    Vladimir Putin’s offer of direct talks with Ukraine is the latest attempt to avoid committing to a 30-day ceasefire | World News
    May 11, 2025
    Putin proposes direct Russia-Ukraine talks in Istanbul on May 15 | Russia-Ukraine war News
    Putin proposes direct Russia-Ukraine talks in Istanbul on May 15 | Russia-Ukraine war News
    May 11, 2025
    Why is Germany such a mess? — RT World News
    Why is Germany such a mess? — RT World News
    May 11, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    Crypto Weekly Roundup: Ethereum Pectra Upgrade Goes Live, Meta Mulls Stablecoins, & More
    Crypto Weekly Roundup: Ethereum Pectra Upgrade Goes Live, Meta Mulls Stablecoins, & More
    May 11, 2025
    Analyst Tips Ethereum To Rival Bitcoin In The Long Run
    Analyst Tips Ethereum To Rival Bitcoin In The Long Run
    May 11, 2025
    Bitcoin Price (BTC) News: 5K in Play
    Bitcoin Price (BTC) News: $105K in Play
    May 11, 2025
    Price analysis 3/17: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, PI
    Price analysis 3/17: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, PI
    May 11, 2025
    Why is Ethereum (ETH) price up today?
    Why is Ethereum (ETH) price up today?
    May 11, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: Halal finance options have expanded in recent years, but demand outstrips supply
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Business > Halal finance options have expanded in recent years, but demand outstrips supply
Halal finance options have expanded in recent years, but demand outstrips supply
Business

Halal finance options have expanded in recent years, but demand outstrips supply

Published July 27, 2023
Share
12 Min Read
SHARE

Contents
Breadcrumb Trail LinksArticle contentTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSUBSCRIBE TO UNLOCK MORE ARTICLESREGISTER TO UNLOCK MORE ARTICLESArticle contentArticle contentArticle contentFinancial Post Top StoriesThanks for signing up!Article contentArticle contentArticle contentArticle contentArticle contentArticle contentArticle contentShare this article in your social networkCommentsJoin the Conversation

Breadcrumb Trail Links

  1. PMN Business

Author of the article:

The Canadian Press

Rosa Saba

Published Jul 27, 2023  •  4 minute read

Mohamad Sawwaf, founder and CEO of financial services firm Manzil, poses for a photograph on Bay Street in downtown Toronto on Wednesday, July 26, 2023.
Mohamad Sawwaf, founder and CEO of financial services firm Manzil, poses for a photograph on Bay Street in downtown Toronto on Wednesday, July 26, 2023. Photo by Nathan Denette /THE CANADIAN PRESS

Article content

When Imad Ansari wanted to start investing around 15 years ago, his options were limited.

Advertisement 2

This advertisement has not loaded yet, but your article continues below.

Financial Post

THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles by Kevin Carmichael, Victoria Wells, Jake Edmiston, Gabriel Friedman and others.
  • Daily content from Financial Times, the world’s leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.

SUBSCRIBE TO UNLOCK MORE ARTICLES

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles by Kevin Carmichael, Victoria Wells, Jake Edmiston, Gabriel Friedman and others.
  • Daily content from Financial Times, the world’s leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.

REGISTER TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account.
  • Share your thoughts and join the conversation in the comments.
  • Enjoy additional articles per month.
  • Get email updates from your favourite authors.

Article content

As a practicing Muslim, Ansari wanted to make sure his investments were halal, meaning that they followed Islamic rules. But there was little on offer that adhered to the principles of halal finance, which for him centre around fairness and equity.

Article content

For years, Ansari resorted mostly to picking individual stocks, researching to make sure he was putting his money where his faith was — a lot more work and often more risk than a popular mutual fund, bond or ETF.

But over the past several years, the Ottawa-based IT professional says the landscape has changed dramatically. He’s noticing more and more options for Muslim clients in mainstream finance, such as halal ETFs, which he’s able to invest in through his financial institution. Ansari has moved most of his previously self-directed investments into those kinds of funds.

Advertisement 3

This advertisement has not loaded yet, but your article continues below.

Article content

“It has been such a game-changer,” he said.

In 2021, 4.9 per cent of people in Canada identified as Muslim _ more than double the share two decades earlier, according to Statistics Canada. That’s almost 1.8 million Muslims, many looking for ways to grow their wealth and buy homes without compromising their faith.

“I still think there’s this tremendous room for growth right now” for halal financial products, said Ansari.

Halal financial products, or halal investing, need to comply with certain rules in Islam. This might also be called Shariah investing or Shariah-compliant investing, as Shariah refers to the rules set out by the religion.

Broadly speaking, halal finance means a person can’t pay or receive interest, and must avoid investing in certain sectors or products such as alcohol, pork or gambling.

Financial Post Top Stories Banner

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Thanks for signing up!

A welcome email is on its way. If you don’t see it, please check your junk folder.

The next issue of Financial Post Top Stories will soon be in your inbox.

We encountered an issue signing you up. Please try again

Article content

Advertisement 4

This advertisement has not loaded yet, but your article continues below.

Article content

Islamic finance operates on the principles of profit and risk sharing, said Khaled Sultan, a senior wealth advisor and portfolio manager at CIBC. While adherence to the rules varies, and some of the minutiae of halal finances may be disagreed upon by scholars, there’s no disagreement over the core tenets of not investing in specific sectors and not paying or profiting off of interest, he said.

Mohamad Sawwaf, founder and CEO of financial services firm Manzil, sees it as a subset of ESG, or environmental, social, and corporate governance, an approach to investing that takes into consideration certain values.

Manzil launched in 2020 with a halal mortgage fund, and has since expanded into wealth management with a robo-advisory platform, and into estate planning.

Advertisement 5

This advertisement has not loaded yet, but your article continues below.

Article content

“What we do is we take the guesswork (out of) what is compliant and what isn’t,” Sawwaf said.

Following Islamic principles means there’s a broad swath of financial products and investment vehicles that are off-limits, said Sawwaf. For example, many Muslims in Canada have been renting for years if not decades because of a lack of halal mortgage options, he said — today, Manzil’s mortgage program has around 12,000 families on its waitlist, and can’t raise funds fast enough to meet demand.

One of the challenges with halal investing has been that traditional low-risk vehicles like bonds weren’t allowed because of the rule about interest, said Sawwaf. As a result, many of the funds available earlier on were higher-risk, he said.

Advertisement 6

This advertisement has not loaded yet, but your article continues below.

Article content

“If you were a less risky investor, that really wouldn’t suit you,” he said. “So we really wanted to kind of tackle the fixed income side of those balance sheets. And that’s why we’ve launched this fund to start with, but with the hopes that we would launch other types of fixed-income funds.”

Manzil clients can invest in the company’s own mortgage fund, but also a selection of other funds, some based in the U.S. and some based on Islamic bonds, called Sukuk. One of the perks of investing with a firm like Manzil is that customers can access some investment opportunities based outside of Canada, where there are more options, said Sawwaf.

The next frontier Sawwaf wants to conquer is the retail side of finance, with hopes of being Canada’s first full-service halal financial institution.

Advertisement 7

This advertisement has not loaded yet, but your article continues below.

Article content

CIBC’s Sultan remembers visiting advisors in 1999 when he first had money to invest, and realizing they couldn’t help him invest within Islamic principles.

“Out of necessity, I ended up having to teach myself both the financial side as well as the Islamic side,” said Sultan.

But a lot has changed since 1999. While firms have been created to meet the needs of Muslim customers, like Winnipeg-based investment firm Canadian Islamic Wealth, mainstream financial companies are also wading in. Wealthsimple launched its halal investment portfolio in 2017, and major insurers like Manulife and SunLife offer Shariah-aligned funds. Halal mortgages have existed in Canada for decades, but today there are far more firms offering them, mostly “mom-and-pop” companies, Sultan said.

Advertisement 8

This advertisement has not loaded yet, but your article continues below.

Article content

Despite all the growth in halal finance, Sultan still sees a lot more room to grow, with demand for halal investing and lending far outstripping supply. He believes that Canada’s major financial institutions have an opportunity to step up and start offering more financial products designed for their Muslim customers.

However, Sultan is confident that will happen. He compared the sector to halal foods, which were much more difficult to find in decades past and are now readily available at grocery stores. Manzil’s mortgage waitlist illustrates the demand waiting in the wings, he said.

“It’s going to be quite profitable for the bank, it’s going to be win-win-win for everybody.”

Sultan advised new investors who are looking for halal ways to grow their money to not compromise their values, but also to remember that pragmatism is one of Islam’s values.

He also recommends that they make requests of their financial institutions in the hopes that more options will become available in the future.

“If enough people ask, it’s a question of demand and supply,” he said.

This report by The Canadian Press was first published July 27, 2023.

Article content

Share this article in your social network

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Join the Conversation

#Halal #finance #options #expanded #years #demand #outstrips #supply

TAGGED:demandExpandedfinanceHalalOptionsoutstripssupplyYears
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Rep. James Comer floats legislation that could help Washington Commanders build stadium at RFK site Rep. James Comer floats legislation that could help Washington Commanders build stadium at RFK site
Next Article At least 8 dead, 1 missing, in Brazil silo blast At least 8 dead, 1 missing, in Brazil silo blast
- Advertisement -

Latest Post

Crypto Weekly Roundup: Ethereum Pectra Upgrade Goes Live, Meta Mulls Stablecoins, & More
Crypto Weekly Roundup: Ethereum Pectra Upgrade Goes Live, Meta Mulls Stablecoins, & More
Cryptocurrency
Analyst Tips Ethereum To Rival Bitcoin In The Long Run
Analyst Tips Ethereum To Rival Bitcoin In The Long Run
Cryptocurrency
US-China talks resume as Trump hails ‘total reset’ in trade relations
US-China talks resume as Trump hails ‘total reset’ in trade relations
World News
UK plans to end ‘failed experiment’ in immigration
UK plans to end ‘failed experiment’ in immigration
World News
Bitcoin Price (BTC) News: 5K in Play
Bitcoin Price (BTC) News: $105K in Play
Cryptocurrency
Price analysis 3/17: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, PI
Price analysis 3/17: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, PI
Cryptocurrency
- Advertisement -

You Might Also Like

Where Will Microsoft Stock Be in 2025?
Business

Where Will Microsoft Stock Be in 2025?

January 27, 2024
Ocado partner Kroger orders new automated technologies
Business

Ocado partner Kroger orders new automated technologies

July 22, 2024
Tesla hopes to stay under Congress’s radar by keeping CATL at arms length (TSLA)
Business

Tesla hopes to stay under Congress’s radar by keeping CATL at arms length (TSLA)

February 1, 2024
Nvidia smashes records as company’s value rises by £232bn in a month – but bad news for Tesla
Business

Nvidia smashes records as company’s value rises by £232bn in a month – but bad news for Tesla

February 3, 2024

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?