Although it is not at the forefront of the global Islamic finance business, the Islamic Finance industry in Canada has recently received high interest from domestic and international investors. It has produced an increasing variety of Shariah-compliant investment and lending solutions. This is because more Muslims are looking for halal banking and finance products. Thus, a more open-minded and progressive society is looking for alternative and socially conscious investment opportunities in general.
Some of the most significant advancements in Islamic finance in Canada in 2014 have been in education. Moreover, the launch of new Islamic investment products has been showing a significant result.
Are There Any Islamic Finance Courses In Canada?
The Rotman School of Management within the University of Toronto is Canada’s top business school. The university continues to be a leader in Islamic finance teaching. It launched Canada’s first MBA program in Islamic finance, which is now in its fourth year and has consistently been a top-ranked program. It is not the only program offered in Canada but this university is one of the best education providers especially in Islamic Finance.
Are There Shariah-compliant Investments in Canada?
The fact about Shariah-compliant investments in Canada is that The Bullion Management Group’s mutual fund, which specializes in purchasing and keeping actual gold, silver, and platinum bars as an investment, will be the first in the list of the most significant Shariah-compliant investment funds.
Islamic Finance At Present in Canada
The Islamic faith is practiced by an estimated 1.5 million individuals in Canada, or about 4% of the population, making Muslims the country’s second-largest religion. Canada is a country that was built by immigration. Thousands of immigrants came to Canada and Canadians warmly welcome them. But there is also an increasing number of Muslims born in Canada and a tiny but growing number of people converting from other religions to Islam. The majority of them live in the Greater Toronto and Greater Montreal areas, are middle-class, and well-educated. The Muslim population is mainly young people; there is a high demand for vehicle financing, home financing, loans, insurance, and other Islamic financial products.
Islamic Finance Institutions in Canada
Muslims make up around 4% of Canada’s population, or 1.5 million people, making them the country’s second-largest religion. Canada is a country founded on immigration. Thousands of immigrants have arrived in Canada, and Canadians have welcomed them with open arms. However, the number of Muslims born in Canada is increasing, as the number of people converting from other religions to Islam. In the following, we will briefly look into some Islamic Finance organizations in Canada:
Fair—the first halal neobank in Canada, offering financial services such as high-yield savings, no-fee international money transfers, and debit cards for kids.
The bank implements fair practices of socially responsible investing (SRI), a strategy for reducing exposure to companies with a negative social impact, such as those profiting from bad labor standards, dangerous products, or environmental destruction.
Aya Financial Inc. provides alternative financial services and solutions to the general public in Canada. It is based on socially responsible ideas of justice and equity for all stakeholders.
The company’s business is to provide businesses and individuals with alternative property financing and investment options. AF presently provides alternative financing for both residential and commercial properties. Besides, the company intends to diversify its services into areas such as vehicle lending, consumer finance, and secured investments, among other things.
the RBC is not an entirely Islamic bank, however, the bank provides Shariah-compliant services options.
The Royal Bank of Canada (RBC), the country’s largest bank, offers a halal investing option tailored exclusively for Muslims. The RBC Shariah-Compliant Equity-Linked Note is the result of significant research over a long period of time, and it is backed by a fatwa given by three well-known Muslim experts (Sheikh Nizam Yakuby, Sheikh Yusuf Talal DeLorenzo, and Sheikh Dr. Mohd Daud Bakar). The three scholars are also members of Shariah supervisory boards of Dow Jones Islamic Market Index’s Shariah.
Islamic Finance in the Future in Canada
Muslims have taken the initiative for the growth of Islamic finance because of the positive attitude of the locals and the government. It is gaining popularity among non-muslims and Muslims, as people now have more of a tendency to make more investments. In the next ten years, the number of Muslims in Canada might double. So, there will be more need for Islamic Financial products and investment products. The Canadian market will be more and more attractive to international investors, and there will also continue to be Islamic finance opportunities there.
Surely, Islamic finance is one of the world’s fastest expanding segments of global finance. According to key industry stakeholder groups, the industry’s overall worth across its three main sectors (banking, capital markets, and Islamic insurance) – exceeded US$2 trillion in 2018 and continues to develop at an above-average rate. Its emphasis on stability and shared risk among partners is in keeping with Canada’s financial tradition. Many individuals discovered that most companies listed on the TSX and S&P are already Islamic finance compliant by default. In this regard, Islamic mortgages would help as they are a cultural and economic innovation that might benefit all Canadians.
Indeed, financial institutions and enterprises that engage in such commercial opportunities will continue to follow Canada’s strict regulatory framework; and these Islamic structures would fit into Canada’s legal environment.
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