Disclaimer: Please be advised that the information provided in this article is relevant as of the time of its composition. However, it is important to recognize that due to the periodic release of new financial reports on a quarterly basis, the status of the mentioned stocks may undergo changes. Therefore, readers are encouraged to exercise diligence and consult updated financial information before making any investment decisions.
Halal stock is one of the developing points in Canada. in addition, Canada has many opportunities to develop this sector further. This blog will give you another interesting and useful article about Halal stocks in Canada. It should provide you with a full overview of all Halal Stocks in Canada so that, you can have a clear idea of it. If you’re a Shariah-compliant investor looking to trade stocks and equities on the Toronto Stock Exchange, then this blog is for you. Canada is one of the countries that is progressively accepting Halal investment possibilities.
Only a few years ago, there was no market for Halal Stocks in Canada, nor was there any method for Shariah-compliant stock investing. Furthermore, even though Shariah-compliant equities were available in Canada’s financial markets, there was no real-time tool or app with information on Halal stocks. However, the situation has entirely changed. Now Muslims in Canada have access to sufficient information on Halal stocks, as well as a suitable atmosphere in which to invest in Shariah-screened equities.
Before we get into the details, let’s go over some fundamental notions concerning Shariah-compliant investing in general.
What is Halal Investment?
Shariah-compliant investments are those that adhere to Shariah standards. As a result of the financial environment that we live in, creating a Shariah-compliant investment can be difficult at times. As a result, Shariah scholars with financial experience have established specific regulations and standards for Shariah-compliant investing.
What are Shariah Compliant Stocks?
In simple terms, Shariah-compliant or HALAL equities are investments in Shariah inspected stocks. In fact, nowadays you can find plenty of Shariah-compliant stocks, as a result of careful research.
What are Shariah Screened Stocks?
A stock is considered Shariah-compliant if it does not operate in prohibited sectors. In the case of mixed business, Scholars have agreed to limit the income from prohibited activities to not more than 5%. In addition, four financial components must be screened before claiming it Shariah-compliant
- Impure income earned through “interest” or other suspect earnings
- Cash and debt compared to Total Assets or Average Market Capital
- Debt compared to Equity or Average Market Capitalization
- Account Receivables
Halal Stocks in Canada
Some of Canada’s most popular stocks are also Shariah-compliant, meaning they meet the Shariah screening standards for halal equities.
The top 5 firms in Canada, along with their Shariah compliance, are shown below. In fact, they are quite popular in Canada.
| Company name | Name | Sector |
| Royal Bank of India | Regional Banks | Not Compliant |
| Toronto Dominion Bank | Regional Banks | Not Compliant |
| Enbridge INC | Natural Gas Utilities Banks | Not Compliant |
| Canadian National Railway Company | Railroads | Compliant |
| Suncor Energy INC. | Oil & Gas – Integrated | Compliant |
This is positive because two of Canada’s top five largest equities are Shariah-compliant, therefore it gives investors who are looking for Shariah-compliant investments more confidence.
You’ll be even more astonished to learn that Shariah-compliant stocks account for 36% of all Canadian stocks.
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Besides, feel free to sign up for our free stock screening services at musaffa.com.