The demand for Islamic banking and finance has grown in Canada due to the growing Muslim population [1] in the country who want to avoid riba and other financial practices in violation of sharia. These sharia-compliant financial products are not offered by main financial institutions and, thus, small financial companies are major players. However, major companies like WealthSimple are starting to embrace the idea. [2]
A Toronto-based financial company UM Financial started giving Sharia-compliant loans to Muslims in 2005 in partnership with Central 1 Credit Union of Vancouver. The company planned to offer no-interest MasterCard as well. [3] UM financial was ordered to go into receivership by the Ontario Superior Court on October 7, 2011. [4] Omar Kalair and Yusuf Panchbaya of UM Financial were charged by RCMP for $4.3-million mortgage fraud, but both men were acquitted of all counts contained in the indictment in Ontario Superior Court June 7, 2019. [5]
The 2024 federal budget announced on April 16 included plans to bring halal mortgages into financial regulatory system. [6]
Company | Islamic model | Year of Inception | Funder | Funding from Banks/ Credit Unions | Serving province | Sharia Standards | Sharia Certification | External Review | Website |
---|---|---|---|---|---|---|---|---|---|
IjaraCDC Canada | Ijarah-wa-Iqtina | 2008 | Yes | AMJA [7] Ebrahim Desai [8] | [1] | ||||
Aya Financial | Diminishing | Yes | Ontario | Ebrahim Desai [9] | [2] | ||||
Zero Mortgage | Diminishing | Yes | Ebrahim Desai [10] | [3] | |||||
Manzil | Murabaha | 2019 | Manzil Mortgage Fund | No | Ontario | AAOIFI | Ebrahim Desai [11] | [4] | |
Manzil | Diminishing Musharakah | 2019 | Manzil Mortgage Fund | No | AAOIFI | Ebrahim Desai [12] | [5] | ||
Eqraz | Murabaha | 2022 | All provinces except Quebec | AAOIFI | [6] | ||||
Canadian Halal Finance Corporation |
Murabaha
Diminishing |
2021 | Alberta | [7] | |||||
Halal Homes |
Murabaha
Diminishing |
Alberta | [8] | ||||||
Murabaha Homes | Murabaha | [9] | |||||||
An-Nur Co-operative | Co-operative | [10] | |||||||
Ansar Co-operative | Diminishing | 1980 | Co-operative | Ontario | Ebrahim Desai [13] [14] [15] | [11] | |||
Interest-Free Housing (Formerly ISNA Housing) | 2008 | Co-operative | [12] | ||||||
Al Ehsaan Housing | Diminishing | Co-operative | Saskatchewan | [13] | |||||
Qurtuba Housing Coop | Diminishing | Co-operative | Quebec | [14] | |||||
Assiniboine Credit Union | Diminishing | Credit Union | Yes | Manitoba | [15] |
Product | Type | First year of offering | Company | Available through | MER | Sharia Certification | Website |
---|---|---|---|---|---|---|---|
Wealthsimple Shariah World Equity Index ETF (WSHR) | Exchange-traded fund (ETF) | 2020 | WealthSimple | gold ETF 0.18%, equity ETF 0.5% [16] | Ratings Intelligence [17] | [16] | |
Wahed FTSE USA Shariah ETF (HLAL) | Exchange-traded fund (ETF) | 2019 | Wahed Invest | 0.5% [18] | [17] | ||
The SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) | Exchange-traded fund (ETF) | 2019 | SP Funds | 0.49% | [18] | ||
SP Funds Dow Jones Global Sukuk ETF (SPSK) | Exchange-traded fund (ETF) | SP Funds | [19] | ||||
The SP Funds S&P Global REIT Sharia ETF (SPRE) | Exchange-traded fund (ETF) | SP Funds | [20] | ||||
Global Iman Fund (IMANX) | Mutual Fund | 2008 | Global Growth Assets | [21] | |||
Manzil Mortgage Fund (MANZL) | Mortgage Fund | 2019 | Manzil | Manzil/ CI Direct | 1.5% [19] | [22] | |
Sukak - Term Deposit | Mortgage Fund | 2019 | AYA Financial | Moya Financial | [23] |
Some institutions have started offering accounts including Registered Education Savings Plan (RESP), Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA) etc.
Company | First Year of Offering | Fees | Minimum Investment | External Review | Website |
---|---|---|---|---|---|
Manzil (through CI Direct) | 2019 | 0.6% | [24] | ||
Assad Wealth Management at IG Wealth Management | 2004 | 0.6% to 1.35% | $50,000 | [25] | |
ShariaPortfolio | 2020 | 0.5 to 2% | [26] | ||
Wealthsimple Invest | 2021 | 0.4 to 0.5% | No mimimum | [27] | |
Global Growth Assets | 2008 | Global News [20] | [28] | ||
Canadian Islamic Wealth | [29] |
The demand for Islamic banking and finance has grown in Canada due to the growing Muslim population [1] in the country who want to avoid riba and other financial practices in violation of sharia. These sharia-compliant financial products are not offered by main financial institutions and, thus, small financial companies are major players. However, major companies like WealthSimple are starting to embrace the idea. [2]
A Toronto-based financial company UM Financial started giving Sharia-compliant loans to Muslims in 2005 in partnership with Central 1 Credit Union of Vancouver. The company planned to offer no-interest MasterCard as well. [3] UM financial was ordered to go into receivership by the Ontario Superior Court on October 7, 2011. [4] Omar Kalair and Yusuf Panchbaya of UM Financial were charged by RCMP for $4.3-million mortgage fraud, but both men were acquitted of all counts contained in the indictment in Ontario Superior Court June 7, 2019. [5]
The 2024 federal budget announced on April 16 included plans to bring halal mortgages into financial regulatory system. [6]
Company | Islamic model | Year of Inception | Funder | Funding from Banks/ Credit Unions | Serving province | Sharia Standards | Sharia Certification | External Review | Website |
---|---|---|---|---|---|---|---|---|---|
IjaraCDC Canada | Ijarah-wa-Iqtina | 2008 | Yes | AMJA [7] Ebrahim Desai [8] | [1] | ||||
Aya Financial | Diminishing | Yes | Ontario | Ebrahim Desai [9] | [2] | ||||
Zero Mortgage | Diminishing | Yes | Ebrahim Desai [10] | [3] | |||||
Manzil | Murabaha | 2019 | Manzil Mortgage Fund | No | Ontario | AAOIFI | Ebrahim Desai [11] | [4] | |
Manzil | Diminishing Musharakah | 2019 | Manzil Mortgage Fund | No | AAOIFI | Ebrahim Desai [12] | [5] | ||
Eqraz | Murabaha | 2022 | All provinces except Quebec | AAOIFI | [6] | ||||
Canadian Halal Finance Corporation |
Murabaha
Diminishing |
2021 | Alberta | [7] | |||||
Halal Homes |
Murabaha
Diminishing |
Alberta | [8] | ||||||
Murabaha Homes | Murabaha | [9] | |||||||
An-Nur Co-operative | Co-operative | [10] | |||||||
Ansar Co-operative | Diminishing | 1980 | Co-operative | Ontario | Ebrahim Desai [13] [14] [15] | [11] | |||
Interest-Free Housing (Formerly ISNA Housing) | 2008 | Co-operative | [12] | ||||||
Al Ehsaan Housing | Diminishing | Co-operative | Saskatchewan | [13] | |||||
Qurtuba Housing Coop | Diminishing | Co-operative | Quebec | [14] | |||||
Assiniboine Credit Union | Diminishing | Credit Union | Yes | Manitoba | [15] |
Product | Type | First year of offering | Company | Available through | MER | Sharia Certification | Website |
---|---|---|---|---|---|---|---|
Wealthsimple Shariah World Equity Index ETF (WSHR) | Exchange-traded fund (ETF) | 2020 | WealthSimple | gold ETF 0.18%, equity ETF 0.5% [16] | Ratings Intelligence [17] | [16] | |
Wahed FTSE USA Shariah ETF (HLAL) | Exchange-traded fund (ETF) | 2019 | Wahed Invest | 0.5% [18] | [17] | ||
The SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) | Exchange-traded fund (ETF) | 2019 | SP Funds | 0.49% | [18] | ||
SP Funds Dow Jones Global Sukuk ETF (SPSK) | Exchange-traded fund (ETF) | SP Funds | [19] | ||||
The SP Funds S&P Global REIT Sharia ETF (SPRE) | Exchange-traded fund (ETF) | SP Funds | [20] | ||||
Global Iman Fund (IMANX) | Mutual Fund | 2008 | Global Growth Assets | [21] | |||
Manzil Mortgage Fund (MANZL) | Mortgage Fund | 2019 | Manzil | Manzil/ CI Direct | 1.5% [19] | [22] | |
Sukak - Term Deposit | Mortgage Fund | 2019 | AYA Financial | Moya Financial | [23] |
Some institutions have started offering accounts including Registered Education Savings Plan (RESP), Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA) etc.
Company | First Year of Offering | Fees | Minimum Investment | External Review | Website |
---|---|---|---|---|---|
Manzil (through CI Direct) | 2019 | 0.6% | [24] | ||
Assad Wealth Management at IG Wealth Management | 2004 | 0.6% to 1.35% | $50,000 | [25] | |
ShariaPortfolio | 2020 | 0.5 to 2% | [26] | ||
Wealthsimple Invest | 2021 | 0.4 to 0.5% | No mimimum | [27] | |
Global Growth Assets | 2008 | Global News [20] | [28] | ||
Canadian Islamic Wealth | [29] |